Hedge Fund Two Sigma Opening Real Estate Unit to Outside Capital

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Two Sigma Investments is preparing to raise money for a real estate fund that taps the firm’s expertise in data science, opening what had been an internal operation to outside capital.

The quant firm’s real estate unit, which registered as an investment adviser on Sept. 25, operates the Two Sigma Real Estate Opportunity Fund and plans to create other vehicles to manage external cash, according to a regulatory filing.