This new hedge fund trying to deliver big returns without expensive PMs has lost money since it launched last summer

"Taproot is run by founder David Lin, previously of Tamridge and Glenview Capital, and by Jason Beverage, its chief investment officer, a former executive at quant giant Two Sigma. They manage the alpha capture fund with the aim of recreating the steady returns of multistrategy managers like Citadel and Millennium without the high costs that come with dozens of human portfolio managers."

"The manager, which received $250 million in backing from massive Canadian pension CPPIB, launched in the third quarter of last year and lost roughly 1% in its first six months of trading, two people close to Taproot told Business Insider. The firm has also lost money through the first two months of 2026, though the exact amount of the drawdown is unclear."

"The computer-driven fund has battled a tough quant environment since launch; July was described as a part of 'a long, slow bleed' for quant funds, and the start of 2026 saw managers like Renaissance Technologies and Engineers Gate lose money."

Taproot Management, backed by $250 million from Canadian pension CPPIB, launched in Q3 2024 with an innovative structure designed to deliver multistrategy returns while minimizing costs associated with large staff. Founded by David Lin and Jason Beverage (former Two Sigma executive), the computer-driven alpha capture fund aims to replicate steady returns from managers like Citadel and Millennium. However, the firm has struggled financially, losing roughly 1% in its first six months and continuing to lose money through early 2026. The challenging quant environment, including difficult market conditions in July and early 2026, has impacted performance. Additionally, the firm experienced leadership changes with director of research Kevin Merritt departing in March.

Read at Business Insider