Key Takeaways
- • Antonio Fortes departed Citadel after 25 days (July 14–August 7, 2018), making him one of the shortest-tenured portfolio managers on record at Ken Griffin's $30 billion hedge fund, before joining Exoduspoint.
- • Exoduspoint, the new fund launched by former Millennium Management star trader Michael Gelband in February 2018, has become a talent magnet, recruiting at least 27 people from banks and competing hedge funds within nine months of its London launch.
- • At least 17 former Millennium employees have joined Exoduspoint globally, triggering a cascade of competitive departures across the hedge fund industry and creating upstream hiring pressure at Millennium, which is now recruiting from Citadel to fill gaps.
- • Citadel has lost multiple senior portfolio managers beyond Fortes, including Diego Megia, a senior PM who spent less than two years at the firm after joining from Barclays, signaling broader retention challenges at the European office.
- • Market intelligence suggests Exoduspoint is offering "lavish packages" to new hires, potentially catalyzing a 2019 bidding war among rival hedge funds competing for top-tier portfolio management talent.
Summary
Citadel's London office is experiencing material talent attrition, with portfolio managers departing at an accelerating pace. The most striking case is Antonio Fortes, who joined Citadel on July 14, 2018, and departed less than a month later on August 7, according to UK Financial Conduct Authority records. Fortes, who previously spent three years at Millennium Capital Partners, has since joined Exoduspoint, the new hedge fund founded by Michael Gelband, a former star trader at Millennium.
Fortes is not an isolated departure. Citadel has also lost Diego Megia, a senior portfolio manager who spent fewer than two years at the fund following his arrival from Barclays. Megia is understood to be transitioning to Millennium Management, reflecting a broader reshuffling across the global hedge fund landscape. The departures underscore execution and retention risks at Citadel's European operations.
The underlying catalyst appears to be Exoduspoint, which launched in London in February 2018 and has become a significant recruitment engine. Since its inception, the fund has hired at least 27 people from both financial institutions and competing hedge funds. Notable recruits include Rory Hill from Man GLG and Benjamin Grigeur from Citadel. More substantially, Exoduspoint has attracted at least 17 former Millennium colleagues of Gelband's globally, effectively reconstituting portions of his previous team.
This exodus from Millennium has created hiring gaps that the firm is filling by recruiting from competitors, including Citadel. Former Citadel portfolio manager Uberto Palomba is expected to join Millennium in early 2019. Market sources indicate Exoduspoint is offering competitive, "lavish packages" to attract talent, a strategy that may force competing hedge funds—including Citadel and Millennium—to elevate compensation and retention packages to stem further departures. The competitive dynamics suggest a potential escalation in portfolio manager compensation during 2019.
Fortes is not an isolated departure. Citadel has also lost Diego Megia, a senior portfolio manager who spent fewer than two years at the fund following his arrival from Barclays. Megia is understood to be transitioning to Millennium Management, reflecting a broader reshuffling across the global hedge fund landscape. The departures underscore execution and retention risks at Citadel's European operations.
The underlying catalyst appears to be Exoduspoint, which launched in London in February 2018 and has become a significant recruitment engine. Since its inception, the fund has hired at least 27 people from both financial institutions and competing hedge funds. Notable recruits include Rory Hill from Man GLG and Benjamin Grigeur from Citadel. More substantially, Exoduspoint has attracted at least 17 former Millennium colleagues of Gelband's globally, effectively reconstituting portions of his previous team.
This exodus from Millennium has created hiring gaps that the firm is filling by recruiting from competitors, including Citadel. Former Citadel portfolio manager Uberto Palomba is expected to join Millennium in early 2019. Market sources indicate Exoduspoint is offering competitive, "lavish packages" to attract talent, a strategy that may force competing hedge funds—including Citadel and Millennium—to elevate compensation and retention packages to stem further departures. The competitive dynamics suggest a potential escalation in portfolio manager compensation during 2019.
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