Closing a hedge fund is far more intricate than merely switching off the lights, locking the doors, and surrendering the office keys to the building manager. The process involves a carefully orchestrated series of financial, legal, and operational steps that must be executed with precision and caution. Every trading position must be unwound in a deliberate and methodical manner to avoid the devastation of a rapid “fire sale”—a scenario in which assets are liquidated hastily, often at deep discounts, potentially inflicting severe losses on backers and investors. Contracts involving employees must also be honored: financial commitments such as deferred compensation, performance-based payouts, and other contractual obligations remain binding. Furthermore, any valuable assets—whether they are physical, financial, or intellectual—must find appropriate buyers willing to pay a fair price.
At Eisler Capital, a London-based multistrategy hedge fund managing approximately $3.2 billion, this closure process began formally with a letter to investors sent in late September. That message, though concise, represented only the initial phase of a much more complex unwinding. The fund, founded in 2015 by Ed Eisler—a veteran of Goldman Sachs well known for his expertise in macro trading—had evolved from its origins as a focused macroeconomic trading shop into a diversified platform with dozens of independent teams, each operating within specialized market domains. The firm’s ambitions had long been expansive, guided by an entrepreneurial spirit and a desire to build a broad investment operation.
By the end of 2023, Eisler Capital’s growth trajectory appeared strong. In an interview with *Business Insider*, Chief Operating Officer Chris Milner described a period of expansion and confidence, noting that the firm had increased its workforce by more than forty percent over the year. He emphasized that the company’s relationships with both capital partners and Wall Street institutions were robust and that the firm did not feel constrained by limits to its growth. At the same time, Milner reflected a measured mindset, acknowledging that expansion was not pursued for its own sake but aligned with a broader sense of prudence and strategic ambition: “We are an ambitious organization,” he stated, “but not one that grows simply to grow.”
Unfortunately, 2023 proved to be the firm’s pinnacle rather than a sustained upward trend. The following year, Eisler Capital delivered a modest return of three percent—an outcome that placed it behind several of its larger and better-performing multistrategy peers. Mounting operational expenses, coupled with rising competition for elite trading talent, placed further pressure on the firm’s margins. Even more telling, two of Eisler’s leading revenue generators, Adrien Delattre and Lewis Morton, departed despite having been elevated to partner status at the close of 2023. In its subsequent letter to investors, Eisler Capital spoke candidly about the growing difficulty of attracting and retaining high-caliber portfolio managers—individuals capable of handling substantial allocations of capital efficiently while working within cost structures acceptable to investors. This challenge had grown “significantly,” according to the firm’s own admission.
The winding down of Eisler Capital thus drew broad attention across the financial industry, not only because of its notable asset size and global footprint but also because of the potential sale of its proprietary intellectual property. Among these assets, the internal risk management and analytics platform known as *Photon* has emerged as a particular prize. Developed under the guidance of Ed Eisler and his longtime collaborator, Sam Wisnia, Photon earned widespread admiration for its sophistication and macro-oriented design. While Eisler’s investment performance lagged behind peers into 2025—with returns reported as a 1.7% loss through August—its proprietary system maintained a sterling reputation among rival funds. One observer at a competing shop remarked that Photon distinguished itself from other analytics frameworks, many of which were optimized for long-short equity or quantitative trading strategies, by embodying the sensibilities of a macroeconomic investor.
In today’s hedge fund landscape, sprawling multistrategy firms dominate discussions of performance, scale, and risk. These institutions emphasize their disciplined risk management as a core aspect of their appeal to institutional investors, claiming the ability to generate consistent returns regardless of market environment. As competition for talent intensifies and firms balance agility with oversight, such risk systems have become indispensable tools. Photon, in particular, is reputed to excel at tracking exposures and managing complex macro risks across multiple trading teams.
Given this reputation, it is unsurprising that several firms—identified by industry sources as Verition and Taula Capital—have reportedly held discussions about acquiring Photon. Both potential buyers declined public comment, but the interest underscores the value placed on sophisticated, proven risk infrastructure. Yet the potential sale has introduced friction with some of Eisler’s limited partners. Two investors expressed frustration that proceeds from any sale of Photon would go directly to Ed Eisler and Sam Wisnia rather than being distributed among fund backers. They argued that, since investor pass-through fees had funded Photon’s development, they were entitled to a portion of the proceeds. However, a source close to the firm indicated that Eisler’s legal agreements were explicit: ownership of intellectual property created within the fund, including Photon, rests with the founder.
Talent, meanwhile, has rapidly become another focal point of the industry’s attention. In late 2023, in a bid to secure loyalty and preserve expertise, Eisler appointed four new partners. Yet within little more than a year, three—including the same top producers Delattre and Morton—had already exited. This wave of departures underscored waning confidence in the firm’s long-term prospects among its highest performers. The one partner who remained, Milan-based portfolio manager Massimiliano Pignatelli, quickly emerged as one of the most sought-after figures in the market. Business development leads at multiple multistrategy funds have confirmed that Pignatelli’s name now tops their recruitment lists.
Pignatelli’s professional background helps explain the attention. Before joining Eisler in 2020, he worked on Macquarie’s London trading desk and spent a decade at Société Générale, where he served as head of European Forward Trading—an area of sophisticated derivatives dealing. Although his career has spanned major European financial centers such as Paris and London, Pignatelli ultimately relocated to Milan, a city increasingly favored by affluent professionals leaving the United Kingdom due to its comparatively accommodating tax environment. He did not respond to *Business Insider*’s request for comment.
Eisler Capital’s workforce, numbering more than 250 individuals spread across nine offices in the United States, Europe, and the Middle East, had been sizable for a fund of its asset base. As the wind-down commenced, many employees faced contractual disincentives to depart immediately—reportedly as high as thirty percent cuts to bonuses—but even these terms did not stem the movement of talent for long. Portfolio managers and executives have begun to appear across rival institutions, as revealed by public filings, LinkedIn updates, media coverage, and conversations with industry insiders. In short, Eisler Capital’s closure is not merely a story of a fund concluding its operations; it represents a seismic redistribution of human and intellectual capital that is reshaping the competitive balance of the hedge fund world.
Sourse: https://www.businessinsider.com/eisler-capital-shutdown-photon-sale-talent-exits-2025-12
