Paloma Partners, the decades-old hedge fund founded by Donald Sussman, is laying off nearly a dozen employees, including several senior executives, as the firm moves to create a leaner operation following a major multi-year restructuring.
Among those departing are chief strategy officer Kristin Cohen, chief marketing officer Louis Molinari, and deputy chief compliance officer Anjali Kamat, according to people familiar with the matter cited by Business Insider. The cuts come shortly after Paloma completed a broad overhaul of its leadership, technology, operations, and investment platform in the first quarter of this year.
A company spokesperson confirmed the streamlining effort, framing it as a logical next step after a period of significant expansion and modernization.
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“After doubling our manager roster and completing a full overhaul of our investment infrastructure over the past year, streamlining the organization is the natural next step toward a leaner, more efficient platform for our investors,” the spokesperson told Business Insider.
The firm now manages approximately $1.1 billion, according to a March filing with the Securities and Exchange Commission, reflecting a notable decline in assets in recent years amid ongoing redemption pressure from investors.
Performance has been uneven. Paloma was down 2.9% through the end of March 2026 but had recovered slightly to a 0.1% gain through mid-April, a person close to the firm said. The fund posted a stronger 8% return for the full year 2025.
Founded 45 years ago, Paloma earned a reputation as an early and astute backer of emerging hedge fund talent, making prescient investments in firms such as D.E. Shaw, Squarepoint Capital, LMR Partners, and Sona Asset Management. However, the firm has also experienced setbacks, including its investment in Jonathan Graham’s Aquatic Capital, a 2019 quant launch that has struggled to generate returns.
Paloma is currently in the process of redeeming its capital from that fund.
After a failed reboot attempt in 2023 under former CEO Neil Chriss, Paloma undertook a second major overhaul in 2024. The firm brought in new leadership, naming Ravi Singh, a veteran of Credit Suisse’s asset management division and Goldman Sachs, as CEO. He was later joined by Mike DeAddio, the former chief operating officer of WorldQuant.
The new team has focused on reshaping the investment side of the business, pruning underperforming teams while adding 11 new external managers in 2025. The firm has positioned itself as more founder-friendly than larger multi-strategy platforms, offering portfolio managers greater flexibility and ownership of their intellectual property.
Recent additions to Paloma’s stable include nVerses Capital, a systematic fund launched by ex-Jump Trading quant JB Kim; Avicene Asset Management, a long-short equity strategy led by former Citadel portfolio manager Moiz Khan; and Castiglione Capital, a London-based systematic trading firm.
Singh highlighted the firm’s approach in an earlier interview with Business Insider this year.
“This model has supported a strong track record of successful launches and reinforced our reputation as a founder-friendly capital partner,” he said.
Kristin Cohen had been a central figure in Paloma’s recent transformation. She joined in 2024 as head of business development after working at Walleye Capital, where she focused on sourcing and recruiting investment talent. She was later promoted to chief strategy officer. Louis Molinari, a longtime Barclays executive with extensive experience in hedge fund consulting and capital raising, joined Paloma a year later; he is also Cohen’s father.
Anjali Kamat, who previously worked in compliance at the Securities and Exchange Commission and joined Paloma from PwC in 2019, also left as part of the cuts. The firm currently employs roughly 110 people, including 22 investment teams.
With the heavy lifting of the operational and technological rebuild now largely complete, Paloma appears to be entering a new phase focused on efficiency and cost discipline. The challenge ahead will be stabilizing its asset base and convincing investors that the revamped, more streamlined platform can deliver consistent risk-adjusted returns in a highly competitive multi-manager environment.
The latest round of cuts signals that, despite its long history and storied pedigree, Paloma is still very much in transition as it seeks to adapt to today’s tougher fundraising and performance landscape.