Wall Street institutions reportedly scale back equity teams amid U.S. stock market plunge, Walleye officially returns part of its capital

BlockBeats news, November 6 — Against the backdrop of today's sharp pullback in US stocks, market reports suggest that some hedge funds are shutting down or streamlining their internal equity long-short teams and proactively reducing assets under management. These moves are interpreted by the market as signals that institutions are cutting positions and reducing risk amid heightened volatility.

According to client confirmation letters disclosed by Bloomberg, multi-strategy hedge fund Walleye Capital, with $17 billion in assets under management, sent a letter to investors on Thursday stating that it will streamline its internal equity long-short business and plans to return some capital. Walleye Capital said it has assessed the optimal size of the fund and decided to proactively return some funds. The news was made public during US stock trading hours.

Other market rumors suggest that Engineers Gate, a New York-based quantitative multi-strategy hedge fund founded by Glenn Dubin, is also shutting down its equity-related teams, with assets under management as high as $23 billion.