Key Takeaways
- • Citadel was up 1.7% in October according to the FT, outperforming a number of peer multi-strategy and equity funds that posted losses that month.
- • Bloomberg reported that LMR (-0.8%), Dymon (-1.8%), NorthRock (-2.3%), Marshall Wace (-5.4% equity) and ExodusPoint (-2.4%) were among funds down in October.
- • Millennium was down 2.3% in October per the FT and pulled $1.5bn of external investments from Axebrook and Troluce Capital after losses, according to Bloomberg.
- • Citadel's people analytics team, run by David Carlin, a former McKinsey partner who joined in 2024, is expanding its performance-appraisal capabilities, with McKinsey alumnus Keith McNulty hired as head of assessments earlier this year.
- • Compensation analytics specialists argue PM payouts should weigh costs such as prime brokerage, market data and team expenses, not just gross PnL.
Summary
Citadel posted a 1.7% gain in October, according to the Financial Times, as a number of hedge funds struggled amid a difficult stretch for the industry. The article notes that the sector has seen departures, pod closures and rising concern about market conditions, with Elliott Investment Management warning of a market prone to abrupt shifts in sentiment.
Bloomberg reported that several multi-strategy and equity managers were down in October, including LMR (-0.8%), Dymon (-1.8%), NorthRock (-2.3%), Marshall Wace (-5.4% in equity) and ExodusPoint (-2.4%). Millennium was down 2.3% for the month per the FT, and Bloomberg reported that Millennium pulled $1.5bn of external investments from Axebrook and Troluce Capital following losses. The article notes that Millennium had recently attracted $30bn in new capital pledges.
Citadel's London business has seen a handful of departures for reasons that were not clear, some of which occurred in September before the October losses across the industry. Citadel declined to comment. The firm has been building a large people analytics function led by David Carlin, a former McKinsey partner who joined in 2024. Citadel also hired Keith McNulty from McKinsey as head of assessments earlier this year, and in September added people analytics specialist Kevin Navikas to cover its New York fixed income business.
Richard Averill, founder of Waterline Economics, which provides compensation analytics for hedge funds, said that PM pay decisions are increasingly complex. "Funds now try to take everything into account," Averill said. "It's not just about PnL but the costs involved, including brokerage, market data charges and team and office costs." He argued that profits generated through expensive prime brokerage arrangements are worth less than those earned cheaply, drawing a parallel to lessons banks learned in 2008.
Bloomberg reported that several multi-strategy and equity managers were down in October, including LMR (-0.8%), Dymon (-1.8%), NorthRock (-2.3%), Marshall Wace (-5.4% in equity) and ExodusPoint (-2.4%). Millennium was down 2.3% for the month per the FT, and Bloomberg reported that Millennium pulled $1.5bn of external investments from Axebrook and Troluce Capital following losses. The article notes that Millennium had recently attracted $30bn in new capital pledges.
Citadel's London business has seen a handful of departures for reasons that were not clear, some of which occurred in September before the October losses across the industry. Citadel declined to comment. The firm has been building a large people analytics function led by David Carlin, a former McKinsey partner who joined in 2024. Citadel also hired Keith McNulty from McKinsey as head of assessments earlier this year, and in September added people analytics specialist Kevin Navikas to cover its New York fixed income business.
Richard Averill, founder of Waterline Economics, which provides compensation analytics for hedge funds, said that PM pay decisions are increasingly complex. "Funds now try to take everything into account," Averill said. "It's not just about PnL but the costs involved, including brokerage, market data charges and team and office costs." He argued that profits generated through expensive prime brokerage arrangements are worth less than those earned cheaply, drawing a parallel to lessons banks learned in 2008.
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