Scott Hoffman cited “ongoing governance challenges” as the reason for his resignation as co-CEO of $70bn hedge fund Two Sigma after less than two years in the role, according to a report by Bloomberg citing a 31 March regulatory filing.

His resignation came following the return of co-founder John Overdeck to the management committee amid a years-long dispute between Overdeck and fellow co-founder David Siegel over the firm’s strategic direction. In 2024, both founders temporarily stepped back and appointed proxies – Overdeck’s choice Carter Lyons and Siegel’s pick Hoffman – to manage the firm, but tensions persisted. Overdeck later removed Lyons’ proxy and reclaimed a seat on the committee, creating a leadership split.

According to the filing, after Hoffman’s departure, Siegel named Seth Platt to the management committee, with the founders now disputing whether this action automatically makes Platt co-CEO. Platt then attempted to remove Lyons, but Overdeck challenged the move, triggering arbitration.

Two Sigma flagged the internal disputes as a material risk in a regulatory filing, emphasising that resolution could take significant time or may never occur.