Key Takeaways
- • Townie Wells, head of fundamental equities at Jain Global, has left the multistrategy firm to launch his own long/short equity hedge fund, according to Bloomberg.
- • Wells is in discussions with Millennium Management over a potential multibillion-dollar capital allocation and plans to raise additional capital from external investors.
- • Jain Global's equities business generated approximately $750m in trading profits in 2025, with Wells among the firm's most successful portfolio managers that year.
- • Jain Global's equities unit struggled in 2026: founder Bobby Jain stepped in during the second quarter, the firm returned all external investor capital, and it began managing money exclusively for Millennium at the start of September.
- • Goldman Sachs research shows roughly half of hedge funds launched in 2025 received initial backing through separately managed accounts (SMAs), up from 16% a decade earlier, with SMAs averaging 84% of initial assets.
Summary
Townie Wells, head of fundamental equities at Jain Global, has departed the multistrategy investment firm to launch a long/short equity hedge fund, according to a Bloomberg report. The New York-based portfolio manager left last week and is in discussions with Millennium Management over a potential multibillion-dollar capital allocation. He also plans to raise capital from external investors alongside any commitment from Millennium. A former Citadel trader, Wells was among Jain Global's most successful portfolio managers in 2025, when the firm generated approximately $750m in trading profits.
His exit follows a difficult period for Jain Global's equities business. Founder Bobby Jain stepped in to help oversee the strategy during the second quarter of 2026. The firm subsequently returned all external investor capital and, at the beginning of September, began managing money exclusively for Millennium. Wells had explored launching an independent hedge fund three years ago, when he also held talks with Millennium over a potential multibillion-dollar allocation.
The structure of the proposed launch reflects a broader shift in how new managers are financed. According to Goldman Sachs research, approximately half of hedge funds launched in 2025 received initial backing through SMAs, compared with 16% a decade earlier. Among launches using these arrangements, managed account allocations averaged 84% of initial assets.
The move comes amid a wave of high-profile portfolio managers establishing independent firms with substantial institutional backing. Former Sequoia Capital investor Jeff Wang recently launched a technology-focused hedge fund with more than $1bn, while former Coatue Management trader Daniel Senft raised $2.5bn for NX1 Capital in January.
Fundraising conditions remain challenging across the industry. Hedge Fund Research data shows approximately 3,200 hedge funds have launched since 2020, while more than 3,100 have closed over the same period.
His exit follows a difficult period for Jain Global's equities business. Founder Bobby Jain stepped in to help oversee the strategy during the second quarter of 2026. The firm subsequently returned all external investor capital and, at the beginning of September, began managing money exclusively for Millennium. Wells had explored launching an independent hedge fund three years ago, when he also held talks with Millennium over a potential multibillion-dollar allocation.
The structure of the proposed launch reflects a broader shift in how new managers are financed. According to Goldman Sachs research, approximately half of hedge funds launched in 2025 received initial backing through SMAs, compared with 16% a decade earlier. Among launches using these arrangements, managed account allocations averaged 84% of initial assets.
The move comes amid a wave of high-profile portfolio managers establishing independent firms with substantial institutional backing. Former Sequoia Capital investor Jeff Wang recently launched a technology-focused hedge fund with more than $1bn, while former Coatue Management trader Daniel Senft raised $2.5bn for NX1 Capital in January.
Fundraising conditions remain challenging across the industry. Hedge Fund Research data shows approximately 3,200 hedge funds have launched since 2020, while more than 3,100 have closed over the same period.
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