Hi! Dan DeFrancesco in NYC. While I don't condone this behavior on airplanes, I don't hate it either.

Today we've got stories on VCs based in Los Angeles to keep an eye on, a high-profile exit from a secretive trading firm, and how to say "No" at work.

But first, it's time to grow up.

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1. I guess this is growing up.

Some of the biggest hedge funds in the world are facing a problem that's proving just as challenging as predicting the markets.

What's the future of the firm?

The Wall Street Journal has a story on that very conundrum, reporting on the tension at the $60 billion hedge fund Two Sigma between cofounders John Overdeck and David Siegel. The firm went as far as disclosing in a March filing that Overdeck and Siegel are having a tough time making key decisions about Two Sigma.

The reported troubles at Two Sigma highlight the growing pains the industry is starting to experience. 

While the structure of the modern hedge fund dates back to the 1940s, the industry really hit its stride during the 1990s. The space continued to boom in the 2000s until the global financial crisis, which served as an extinction event for many funds.

But those that made it through the crisis ended up larger and more powerful than perhaps even they could have predicted.

Now, many of these funds have branched out into multiple strategies and other opportunities (like venture investing), and are considering what their future looks like after their cofounders are gone.

For some, the evolution of their fund has mirrored their banking counterparts. It shouldn't come as a surprise, as some of the biggest funds already have robust internships and training programs that rival that of investment banks.

But I imagine not every hedge fund will want to go that route. Some will want to avoid falling down a rabbit hole of bureaucracy and red tape in an effort to further institutionalize themselves. Of course, that might mean they'll miss out on attracting as much money from investors. But it could also serve as a recruiting tool to try and attract talent not interested in joining funds that are quasi-big banks.

Read more about the reported beef between Two Sigma's billionaire cofounders.

And here's more on how hedge funds like Citadel and Millennium are transforming themselves with the help of Goldman Sachs' alumni.

In other news:

2. A rare executive exit from Jump Trading. Peter Deaner, the COO of the systematic trading firm's European headquarters, is expected to leave early next year. More on his departure.

3. Meet the top up-and-coming venture investors in Los Angeles. These 31 VCs play a crucial role in LA's thriving startup scene. Check them all out.

4. The reported deep ties between Jeffrey Epstein and Jes Staley. Epstein reportedly offered to help the former JPMorgan executive's daughter apply to Columbia. Read about it here.

5. Add PE firms to the long list of people that didn't consider interest-rate risk. Many PE-backed companies are getting hammered by rising interest rates as a result of their owners choosing not to hedge against the risk, per Bloomberg.

6. A surprise entrant in the fight over the ethical use of AI. Asset managers have entered the fray, as they grow worried about being held liable for backing tech companies whose usage of AI might cause human rights issues, according to the Financial Times. More on why these investors want tech companies to tread carefully.  

7. CliffsNotes for Bill Ackman. The billionaire investor and CEO of Pershing Square Capital shared his thoughts on a multitude of topics during a recent lengthy Twitter post. Here are six of his best quotes.

8. Your scheduled departure is on time. A new survey is ranking the best airlines in the world, and it's a tough showing for the US. Check out the 20 best airlines, which includes only a single US carrier.

9. Oh, you fancy, huh? A report from a Swiss private bank rated the cities that'll cost you the most if you want to live in luxury. Here's the top 10.

10. No thanks, but no thanks. We've got some tips for how to say "No" in a professional setting without feeling bad about it. Avoid getting more work dumped on you and check out this story.

Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.