Two Sigma Billionaire Founders in Rift That Poses Material Risk

A rift between the billionaire co-founders of Two Sigma Investments over the firm’s organization and succession plans, as well as other disputes, could pose a threat to its clients.

Ongoing disagreements between John Overdeck and David Siegel, who started the quantitative hedge fund in 2001, were so strained that the firm took the rare step of citing them as a material risk in a March 31 regulatory filing. The Wall Street Journal reported on the disclosure earlier Tuesday.

David Siegel, left, and John Overdeck

Photographers: Jeenah Moon/Bloomberg/Eugene Gologursky/Getty Images

Overdeck and Siegel, who are the only members of the firm’s management committee, have failed to agree on ...