Two Sigma Founders Head to Arbitration After Years-Long Feud (1)

Two Sigma Investments’ billionaire founders, John Overdeck and David Siegel, are heading to arbitration after a longstanding feud over the direction of the quant hedge fund.

Two Sigma, which manages more than $60 billion, disclosed the arbitration and a pair of executive departures in a letter to investors Wednesday. The firm said in the letter that it isn’t a party to the dispute and doesn’t intend to share regular updates about it with clients, according to people familiar with the matter.

“While the arbitration between the firm’s founders runs its course, the management team remains focused on ...