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Shares of Easy Englander's Millennium Management have risen 15 percent in the past year, beating the broader hedge fund industry, but lagging a rising US stock market.
The company, which manages $72.1 billion across more than 320 investment teams, posted a 2.5 percent profit last month, according to investors.
Millennium The broader $4.5 trillion hedge fund industry appears to have outperformed last year. Hedge funds rose on average 2.4 percent in November, and are up 10.2 percent in the first 11 months of 2024, according to Hedge Fund Research. The data provider has not yet published figures for December.
Last year, the S&P 500 index of major US companies It rose by 23.3 percentagainst the backdrop of significant gains for a few technology companies.
Along with Ken Griffin Castle, Millennium — which Englander founded in 1989 with $35 million in assets — is a pioneer of the multi-manager hedge fund model. These funds trade a wide range of strategies across equities, fixed income, commodities, currencies and other markets. Millennium He declined to comment.
Sometimes known as platforms or pod stores, multi-managers typically use a centralized risk system designed to prevent large losses. It has become the most popular sector in the global hedge fund industry, with its promise of consistent returns with low volatility, regardless of market volatility, which resonates with clients such as pension funds and sovereign wealth funds.
Shares of multiple management companies rose 6.8 percent in the first 11 months of last year, according to HFR. The industry's gains last year were led by equity-focused hedge funds, which rose 3.1 per cent in November and 13.1 per cent in the first 11 months of the year. Performance in November was driven by Donald Trump's victory in the US presidential election, as managers and investors positioned themselves for more business-friendly policies from the incoming administration.
Meanwhile, DE Shaw's flagship multi-strategy composite hedge fund rose 18 percent in 2024, and its second-largest fund Oculus rose 36 percent, its best year ever, according to a person familiar with the situation. The $65 billion company is expected to return half of last year's profits from the two funds to clients, the source said.
De Shaw declined to comment on the numbers first reported by Bloomberg.
Multi-manager performance in 2023 was mixed, with larger groups such as Citadel and Millennium posting double-digit returns, while some smaller names such as Balyasny Asset Management and Schonfeld Strategy Advisors fared slightly better on cash returns.
But investors said 2024 looked set to be a year of stronger returns for the sector, with Citadel, Balyasny and Schonfeld posting double-digit gains in the 11 months to the end of November.
