Tudor-backed hedge fund Xantium plans record $9B spinout: FT

Quantitative hedge fund Xantium plans to separate from billionaire Paul Tudor Jones II’s investment firm Tudor in the first half of 2027, launching independently with approximately $9 billion in assets, the Financial Times reported, citing people familiar with the plans.

The move could mark the largest hedge fund spinout on record, surpassing the $8.4 billion launch of Systematica Investments, which separated from BlueCrest Capital Management in 2015. Xantium, which employs roughly 300 people, will retain financial backing from Tudor, although the parent company’s potential ownership stake remains unclear.

For investors, the planned separation highlights the growing scale of quantitative investment strategies and institutional demand for established managers. Xantium’s substantial asset base could give it a competitive advantage over newer hedge funds facing rising operating costs and intense competition for capital and trading talent.

Founded within Tudor in 2019 by former D.E. Shaw executives Oliver Watson and Sergey Levin, Xantium combines algorithmic trading with discretionary investment decisions. Its strategies span equities, fixed income, commodities and currencies, with computer-driven models accounting for most portfolio risk.

Most of Xantium’s assets come from outside investors, with additional capital supplied by Tudor, management and employees. The firm operates offices in New York, London, Salt Lake City and Abu Dhabi.

The planned launch comes as large multistrategy firms such as Citadel and Millennium Management increasingly compete to retain successful portfolio managers. Xantium’s independence would demonstrate that established investment teams can still pursue standalone operations despite mounting industry barriers.