Overdeck Warns Divorce Payout Could Upend Two Sigma Voting

John Overdeck told New Jersey Superior Court that a court-ordered divorce payout above the $723 million he has offered could force him to sell part of his holding in Two Sigma and upset his equal voting position with co-founder David Siegel. The testimony is part of one of the largest divorce cases in the state.

Overdeck estimated his stake in Two Sigma at about $4.9 billion. His wife, Laura Overdeck, is seeking roughly 35% of the holding, which she values at about $6.2 billion. He said the $723 million offer represents an amount he believes he can pay without liquidating shares.

He warned that a larger award, especially one with a short deadline, could require selling shares under less favorable market conditions. Such sales, he explained, could reduce his stake and alter the balance of control between him and Siegel. Overdeck testified, “Maintaining voting parity with Dr Siegel is a principal concern.”

Overdeck has been on the witness stand for six days. The trial will pause for a recess and resume in October. Judge Bruce Buechler is hearing the case without a jury and is expected to issue a ruling several months after the trial concludes.

Two Sigma is a quantitative hedge fund managing roughly $80 billion in assets. The firm was co-founded by Overdeck and David Siegel; the founders have had disagreements in the past over the firm’s management and structure. Overdeck said his proposed cash settlement is intended to resolve the claim without forcing share sales that could affect company ownership and voting arrangements.