Walleye Capital

Walleye Capital

Company type	Private
Industry	Hedge fund management
Founded	2005 in Minnesota, United States
Founder	Irving Kessler, Peter Goddard, and three other partners
Headquarters	New York City , United States
Area served	Global (New York, London, Dubai)
Products	Hedge fund management, multi-strategy investment, Dockside Platforms

Walleye Capital (commonly known as Walleye) is a U.S.-based hedge fund management company specializing in multiple strategies, with its main office located in New York and additional branches in London and Dubai.

Background

Established in 2005 in Minnesota by Irving Kessler, Peter Goddard, and three other partners, Walleye initially operated as an options market-making firm. The company capitalized on electronic trading combined with sophisticated data analytics to drive profitability. Kessler, who had prior experience as a floor trader, was also the founder of Deephaven Capital Management.

Peter Goddard was instrumental in creating Deephaven, a platform that allowed clients to perform real-time large-scale data queries, thereby offering a strategic advantage. Over time, the firm encountered several regulatory penalties due to compliance violations.

In 2016, the firm spun off Deephaven Data Labs to focus on wider data-related challenges beyond its original scope.

By 2017, Walleye shifted its business model to accept external investments and reorganized itself as a hedge fund. This change was part of a deliberate effort to move away from its Midwestern roots and establish itself as a prominent mid-sized multi-strategy investment platform. The firm intentionally capped its assets under management to concentrate on volatility and quantitative investment approaches.

In 2023, Walleye introduced Dockside Platforms, designed to link investors with smaller money managers who provide lower fees, enhanced liquidity, and greater transparency. This initiative positioned Walleye as a competitor to larger hedge funds such as Citadel LLC, Millennium Management, LLC, and Point72 Asset Management.

As part of ongoing restructuring activities, the company reduced its workforce by 12 employees (approximately 4% of staff) in March 2024. Further workforce reductions occurred in August 2024 with an additional 12 layoffs and the shutdown of the Houston office. In October 2024, eight more traders exited the firm amid continued organizational changes.