Engineers Gate cuts majority of fundamental equities team after October losses

Engineers Gate has dismissed most of its Synthesis fundamental equities team, including its head Mike Daylamani, after reviewing performance following October losses tied to the technology selloff, Hedgeweek reports, citing Bloomberg. The team represented roughly 14% of the New York manager's gross market value at the end of October, and five fundamental portfolio managers remain.

Chief executive Greg Eisner told investors the team's results fell short of what its structure required. A person familiar with the firm's results put its loss at 5.5% for October up to 23 October. The firm is also exiting or shrinking a few lower-conviction portfolios and cutting allocations to external China-focused managers while it builds internal Asia capabilities.