Key Takeaways
- • ExodusPoint led multistrategy hedge funds in September with a 1.5% monthly gain, bringing its 2024 year-to-date return to 6.5%, according to sources close to Michael Gelband's $11 billion firm.
- • Millennium and Schonfeld emerged as strong performers, with Millennium gaining 1.1% in September (up 9.5% YTD) and Schonfeld's flagship fund returning 1.1% (up 13.1% YTD), while Schonfeld's fundamental equities fund posted 12% year-to-date gains.
- • Citadel's Wellington flagship fund finished September flat despite a 10% year-to-date return; the firm's Tactical Trading fund gained 0.9% in September and is up 15.6% for the year, positioning it behind top performers.
- • ExodusPoint faces a new performance fee hurdle beginning next month—a new share class that only yields performance fees if the fund outperforms short-term Treasury bonds, reflecting institutional investor pressure on fee structures.
- • Walleye Capital, which led in August, declined 0.2% in September but remains up 11.1% year-to-date, and Balyasny trailed peers during the month.
Summary
ExodusPoint's $11 billion multistrategy operation topped its peer group in September, capitalizing on strong performance dynamics as the hedge fund industry faces intensifying scrutiny over fee structures. The Michael Gelband-led firm posted a 1.5% return last month, extending its 2024 performance to 6.5% year-to-date. This positions ExodusPoint ahead of most major multistrategy competitors, though the firm faces a significant operational shift next month with the introduction of a new share class that conditions performance fee eligibility on outperformance relative to short-term Treasury bonds—a direct response to redemptions and institutional investor demands for enhanced accountability on fund costs.
Millennium and Schonfeld demonstrated resilience and growth across the period. Millennium, Michael Gelband's former employer, generated 1.1% in September returns and is up 9.5% through the third quarter. Schonfeld's flagship fund matched Millennium's monthly performance at 1.1%, with stronger year-to-date results at 13.1%, while its fundamental equities vehicle posted 0.2% in September and 12% year-to-date performance, signaling a bounce-back year for the multimanager.
Citadel and Walleye demonstrated mixed results relative to the September leaders. Ken Griffin's Citadel finished September flat in its flagship Wellington fund but has generated nearly 10% year-to-date returns. The Miami-based firm's Tactical Trading fund, which deploys equities and quantitative strategies, gained 0.9% last month and is up 15.6% for the year. Walleye Capital, which led competitors in August, reversed course in September with a 0.2% decline, though the $5 billion manager remains up 11.1% year-to-date. Balyasny lagged behind top performers during the month.
The performance hierarchy reflects divergent strategy execution and market positioning, with ExodusPoint's regulatory-adjacent fee restructuring signaling broader industry headwinds around investor cost sensitivity and demand for performance accountability.
Millennium and Schonfeld demonstrated resilience and growth across the period. Millennium, Michael Gelband's former employer, generated 1.1% in September returns and is up 9.5% through the third quarter. Schonfeld's flagship fund matched Millennium's monthly performance at 1.1%, with stronger year-to-date results at 13.1%, while its fundamental equities vehicle posted 0.2% in September and 12% year-to-date performance, signaling a bounce-back year for the multimanager.
Citadel and Walleye demonstrated mixed results relative to the September leaders. Ken Griffin's Citadel finished September flat in its flagship Wellington fund but has generated nearly 10% year-to-date returns. The Miami-based firm's Tactical Trading fund, which deploys equities and quantitative strategies, gained 0.9% last month and is up 15.6% for the year. Walleye Capital, which led competitors in August, reversed course in September with a 0.2% decline, though the $5 billion manager remains up 11.1% year-to-date. Balyasny lagged behind top performers during the month.
The performance hierarchy reflects divergent strategy execution and market positioning, with ExodusPoint's regulatory-adjacent fee restructuring signaling broader industry headwinds around investor cost sensitivity and demand for performance accountability.
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