Key Takeaways
- • Michael Gelband, former fixed income chief at Millennium Management, is launching a new hedge fund with Hyung Soon Lee, the firm's former equity chief, expected to debut by end of 2017 or early 2018.
- • Gelband announced his departure from the $35 billion Millennium in January after leading the fixed income unit to generate $7 billion in trading revenue over his eight-year tenure.
- • The new fund has already attracted significant investor interest and is expected to be substantial in size, according to people familiar with the plans.
- • At least six Millennium staffers have departed or are expected to leave the firm to join the new operation, including Peter Hornick (global head of business development) and Dev Joneja (head of risk), signaling material talent exodus.
- • The departure represents a notable spinoff from Izzy Englander's Millennium Management, one of the hedge fund industry's largest multi-strategy platforms.
Summary
Two senior managers from Izzy Englander's $35 billion hedge fund Millennium Management are establishing an independent fund, marking a significant departure of talent and capital from one of the industry's largest platforms. Michael Gelband, who previously led Millennium's fixed income operations, is setting up the new fund in partnership with Hyung Soon Lee, the firm's former equity chief. The launch is expected to occur by the end of 2017 or early 2018, with preliminary reports suggesting the fund has already generated substantial investor interest.
Gelband's departure follows his announcement in January that he would be leaving Millennium after eight years leading the fixed income division. During his tenure, he claimed to have generated $7 billion in trading revenue for the unit—a figure he communicated directly to colleagues via email. Lee had already departed Millennium in the prior year. Both executives bring significant operational and investment credentials to the new venture, positioning it as a credible alternative for institutional capital.
The spinoff involves material organizational disruption at Millennium. Beyond Gelband and Lee, six additional staff members have either recently departed or are expected to leave: Peter Hornick, global head of business development; Patrick Tynan, business manager for equities; Enrico Corsalini, business manager for fixed income; Mike Chu, fixed income technology; Steve Barbo, fixed income financing; and Dev Joneja, head of risk, who is expected to depart in the coming months. This concentration of departures across business development, operations, and risk management indicates a coordinated transition to establish the new fund's infrastructure.
The venture reflects broader industry dynamics where proven hedge fund executives leverage track records and client relationships to launch independent platforms. Millennium Management declined to comment on the departures. The expected size and investor reception of Gelband and Lee's fund will test institutional capital's appetite for new multi-strategy alternatives in a competitive hedge fund landscape.
Gelband's departure follows his announcement in January that he would be leaving Millennium after eight years leading the fixed income division. During his tenure, he claimed to have generated $7 billion in trading revenue for the unit—a figure he communicated directly to colleagues via email. Lee had already departed Millennium in the prior year. Both executives bring significant operational and investment credentials to the new venture, positioning it as a credible alternative for institutional capital.
The spinoff involves material organizational disruption at Millennium. Beyond Gelband and Lee, six additional staff members have either recently departed or are expected to leave: Peter Hornick, global head of business development; Patrick Tynan, business manager for equities; Enrico Corsalini, business manager for fixed income; Mike Chu, fixed income technology; Steve Barbo, fixed income financing; and Dev Joneja, head of risk, who is expected to depart in the coming months. This concentration of departures across business development, operations, and risk management indicates a coordinated transition to establish the new fund's infrastructure.
The venture reflects broader industry dynamics where proven hedge fund executives leverage track records and client relationships to launch independent platforms. Millennium Management declined to comment on the departures. The expected size and investor reception of Gelband and Lee's fund will test institutional capital's appetite for new multi-strategy alternatives in a competitive hedge fund landscape.
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