Walleye Capital is restructuring its internal equity long/short business following a 5.9% loss in October, with the $17bn hedge fund manager parting ways with the division’s head, Anil Gondi, and a substantial proportion of its investment team.

In a letter to investors seen by Business Insider, chief executive and chief investment officer Will England said the firm was reviewing “every aspect” of its business following its worst monthly performance since March 2020.

The changes include the departure of Gondi, who joined Walleye in July 2025, alongside a significant reduction in the internal equity long/short team.

“Those efforts did not produce the results we expected, and the opportunity cost and resources consumed have been too high relative to the return,” England wrote, referring to the firm's previous investment in developing its internal stock-picking capabilities.

Gondi previously worked as a portfolio manager at Balyasny Asset Management before founding 6elm Capital.

The move marks the second senior departure from Walleye’s equity business this year. Matt Giannini, the unit’s chief operating officer, left in September to return to Citadel, as previously reported by Business Insider.

Despite the restructuring, Walleye is not withdrawing from equity investing. Internal investment teams will report directly to England, while the firm plans to maintain its investments in externally managed stock-picking funds and continue recruiting internal portfolio managers.

The manager has also strengthened its external investment sourcing capabilities, recently hiring Anna Dev, formerly of Millennium, in a business development role focused on identifying third-party investment opportunities.

Walleye is among a number of multi-strategy hedge fund platforms allocating capital to external managers, including funds established by former Citadel investors. These include Tommaso Trento’s Benchstone Capital and Fifthdelta, founded by Niall O’Keeffe and Tio Charbaghi.

The restructuring comes amid a challenging period for equity-focused hedge funds. October saw losses across several prominent multi-strategy managers, including Point72 Asset Management and Schonfeld Strategic Partners.

Equity markets were volatile during the month, with the S&P 500 falling approximately 1%, while sell-offs in major technology stocks, including Meta and Intel, contributed to heightened market uncertainty. Short-selling activity also increased, approaching five-year highs, according to Goldman Sachs data.

Walleye declined to comment. Gondi did not immediately respond to a request for comment.