How Paloma Partners is repaying $1.2 billion to investors — including pulling money from external managers

How Paloma Partners is repaying $1.2 billion to investors — including pulling money from external managers

Donald Sussman founded Paloma Partners in the 1980s. The fund is best known for seeding the quant giant D. E. Shaw.Manny Fernandez/Getty ImagesPaloma Partners told investors this past fall it would take time to meet $1.2 billion in redemptions.It's pulling $600 million from hedge funds it's backed, including the quant firm Aquatic Capital.The $1.7 billion hedge fund has struggled with performance, gaining just 2.5% in 2024.The multistrategy hedg…