Two Sigma controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile1 entries
2023
Investment-model error and SEC enforcement
Two Sigma publicly faced scrutiny after an investment-model error affected certain portfolio results. The SEC subsequently announced settled charges against Two Sigma entities involving compliance controls, model governance, and disclosures. The episode highlighted the operational and supervisory risks associated with complex quantitative investment systems.