Key Takeaways
- • Bobby Jain, former senior official at Millennium Management, has raised $5.3 billion for his new multi-strategy hedge fund, Jain Global, according to the source article.
- • Jain Global is the largest hedge fund launch cited since ExodusPoint Capital Management's $8 billion raise in 2018, and it has hired more than 200 people, including more than 40 portfolio managers.
- • Jain Global's fee structure offers a performance fee of 10% of returns for investors contributing more than $250 million, 13% for clients in between, and 15% for accounts under $100 million.
- • Dieho Megía's Taula Capital Management gathered $5 billion in commitments, including $3 billion from Millennium to manage.
- • Citadel's Wellington fund gained 8.1% and Millennium gained 6.9% in the first half of 2024, per Bloomberg data, while the S&P 500 was up nearly 15% through June.
Summary
Multi-strategy hedge funds have become a prominent investment vehicle on Wall Street, following the success of Citadel and Millennium. A number of firms have been launched by alumni of these two managers seeking to run their own platforms. The latest is Jain Global, led by Bobby Jain, a former senior official at Millennium, who has raised $5.3 billion for his new multi-strategy fund, according to the source article.
The multi-strategy model centralizes functions such as capital access, risk management, macroeconomic analysis, and technology, while individual teams run their own strategies and compete internally for capital. Managers are compensated on the profitability of their portfolios, and successful managers are allocated more capital. The article notes that Citadel founder Ken Griffin has an estimated fortune of $41.8 billion according to the Bloomberg Billionaires Index, and that Millennium founder Izzy Englander's fortune is valued at $13.3 billion.
Jain spent more than two decades at Credit Suisse, where he was global head of asset management, and seven years at Millennium, where he shared the Investment Director position with Englander. During his tenure, Millennium's assets doubled to $60 billion. Jain Global has hired more than 200 people, including more than 40 portfolio managers, who will run about half a dozen strategies. The source article describes the launch as the largest since ExodusPoint's $8 billion raise in 2018, led by Michael Gelband.
Other Millennium alumni have also launched firms. Dieho Megía founded Taula Capital Management, which gathered $5 billion in commitments, including $3 billion from Millennium. Taula focuses on macro, fixed-income relative value, and inflation-risk trading. The article contrasts its narrower scope with the breadth of larger platforms such as Citadel.
Jain Global's fee structure charges a performance fee of 10% of returns for investors contributing more than $250 million, 13% for clients in between, and 15% for accounts under $100 million. The article notes that Jain is raising capital at a time when investors can earn meaningful yields in relatively safe instruments. According to Bloomberg data cited in the article, Citadel's Wellington fund gained 8.1% and Millennium gained 6.9% in the first half of the year, while the S&P 500 rose nearly 15% and the Nasdaq 18% through June.
The multi-strategy model centralizes functions such as capital access, risk management, macroeconomic analysis, and technology, while individual teams run their own strategies and compete internally for capital. Managers are compensated on the profitability of their portfolios, and successful managers are allocated more capital. The article notes that Citadel founder Ken Griffin has an estimated fortune of $41.8 billion according to the Bloomberg Billionaires Index, and that Millennium founder Izzy Englander's fortune is valued at $13.3 billion.
Jain spent more than two decades at Credit Suisse, where he was global head of asset management, and seven years at Millennium, where he shared the Investment Director position with Englander. During his tenure, Millennium's assets doubled to $60 billion. Jain Global has hired more than 200 people, including more than 40 portfolio managers, who will run about half a dozen strategies. The source article describes the launch as the largest since ExodusPoint's $8 billion raise in 2018, led by Michael Gelband.
Other Millennium alumni have also launched firms. Dieho Megía founded Taula Capital Management, which gathered $5 billion in commitments, including $3 billion from Millennium. Taula focuses on macro, fixed-income relative value, and inflation-risk trading. The article contrasts its narrower scope with the breadth of larger platforms such as Citadel.
Jain Global's fee structure charges a performance fee of 10% of returns for investors contributing more than $250 million, 13% for clients in between, and 15% for accounts under $100 million. The article notes that Jain is raising capital at a time when investors can earn meaningful yields in relatively safe instruments. According to Bloomberg data cited in the article, Citadel's Wellington fund gained 8.1% and Millennium gained 6.9% in the first half of the year, while the S&P 500 rose nearly 15% and the Nasdaq 18% through June.
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