New Mexico PERA pulls $100m from Two Sigma fund

New Mexico’s Public Employees Retirement Association redeemed roughly $100 million from Two Sigma’s Absolute Return Enhanced Fund in June, citing organisational uncertainty tied to a dispute between co‑founders John Overdeck and David Siegel.

PERA’s holding in the strategy was valued at about $100 million at the end of March; the redemption was processed in June. The pension fund pointed to concerns about the firm’s governance and the absence of a clear timetable to resolve the internal conflict.

The Absolute Return Enhanced Fund has posted strong returns, gaining about 12.4% so far this year after a 15% return in 2025. The strategy had outperformed PERA’s benchmark and comparable funds, and the pension highlighted the firm’s ability to analyse large volumes of data quickly as a performance advantage.

Two Sigma has secured replacement capital for the strategy, which is one of the firm’s largest funds and has been closed to new investors for several years.

The disagreement between Overdeck and Siegel has involved the firm’s management and strategic direction and has contributed to senior departures and internal disputes.

A current point of contention is whether Siegel’s selection of a replacement member for the management committee should also carry the co‑chief executive title. That issue could be referred to arbitration and might require an independent third party to resolve.

PERA framed the redemption as a response to organisational risk rather than investment performance. Representatives for Two Sigma and PERA did not provide comments.