Key Takeaways
- • ExodusPoint Capital Management's assets under management fell roughly $1 billion in the first half of 2024, from $12.02 billion at year-end 2023 to $11.04 billion on June 30, according to a regulatory filing reported by Reuters.
- • The filing gave no reason for the decline; a source familiar with the matter attributed it to client withdrawals, and the fund has been closed to new money since 2023 and is not replacing redeemed capital.
- • ExodusPoint returned 3.6% through July 2024, trailing the 6.3% average for multi-strategy hedge funds per PivotalPath and Citadel's 8.82% gain.
- • Co-founder Hyung Lee stepped down as head of equities to become an adviser, while Michael Gelband became chief investment officer.
- • AUM has fallen from $13.1 billion in December 2022, against a $8 billion launch in 2018 that was the largest hedge fund debut on record.
Summary
ExodusPoint Capital Management reported a $1 billion decline in assets under management in the first half of 2024, according to a regulatory filing cited by Reuters. Assets fell to $11.04 billion on June 30 from $12.02 billion at the end of last year. The firm had $13.1 billion in assets in December 2022. The filing did not state a reason for the drop, but a source familiar with the matter said it reflected client withdrawals. A separate source said the fund has been closed to new money since last year and has not been replacing capital. ExodusPoint declined to comment.
The firm, founded by Michael Gelband and Hyung Lee and launched in 2018 with $8 billion, trades fixed income and equities across multiple strategies. Its performance has lagged peers in 2024. ExodusPoint posted gains of 3.6% through July, while multi-strategy hedge funds averaged 6.3% over the same period, according to the research firm PivotalPath. Citadel, led by Ken Griffin, gained 8.82%.
The firm has also undergone leadership changes. According to the second source, Lee stepped down as head of equities and will serve as an adviser, and Gelband has become chief investment officer. Hedge Fund Alert reported the moves earlier this month.
Reuters noted broader pressure on the multi-strategy category, which held more than $700 billion in U.S. assets according to the Office of Financial Research's Hedge Fund Monitor. Investors have grown more selective, and a recent Goldman Sachs survey showed falling global appetite for the most expensive multi-strategy funds. Multi-strategy managers including ExodusPoint and Citadel pass through all money management expenses to clients. Separately, former Millennium co-chief investment officer Bobby Jain launched Jain Global last month with $5.3 billion in commitments, short of his initial target.
The firm, founded by Michael Gelband and Hyung Lee and launched in 2018 with $8 billion, trades fixed income and equities across multiple strategies. Its performance has lagged peers in 2024. ExodusPoint posted gains of 3.6% through July, while multi-strategy hedge funds averaged 6.3% over the same period, according to the research firm PivotalPath. Citadel, led by Ken Griffin, gained 8.82%.
The firm has also undergone leadership changes. According to the second source, Lee stepped down as head of equities and will serve as an adviser, and Gelband has become chief investment officer. Hedge Fund Alert reported the moves earlier this month.
Reuters noted broader pressure on the multi-strategy category, which held more than $700 billion in U.S. assets according to the Office of Financial Research's Hedge Fund Monitor. Investors have grown more selective, and a recent Goldman Sachs survey showed falling global appetite for the most expensive multi-strategy funds. Multi-strategy managers including ExodusPoint and Citadel pass through all money management expenses to clients. Separately, former Millennium co-chief investment officer Bobby Jain launched Jain Global last month with $5.3 billion in commitments, short of his initial target.
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