Key Takeaways
- • Steve Barbo, ExodusPoint's first-ever treasurer, is departing the $12 billion New York-based hedge fund, marking a leadership transition among the firm's early hires from Millennium Management.
- • CFO Erik Addington will absorb treasury responsibilities, consolidating the role under his purview. Addington joined ExodusPoint in 2018 from Nomura, where he served as CFO and treasurer, and previously worked at Lehman Brothers alongside founder Michael Gelband.
- • Barbo's departure occurs amid investor redemptions and underperformance, with ExodusPoint returning 2.2% through Q1 2024, trailing competitors including Citadel and Millennium Management.
- • ExodusPoint has experienced consecutive years of redemptions, with LPs withdrawing $1 billion in 2023—the second straight year of outflows—though the firm raised $1 billion last year to offset losses.
- • Barbo's 30-year career spans major financial institutions, beginning as an analyst at Salomon Brothers in the early 1990s before moving through treasury roles at hedge funds including Archeus Capital and Merrill Lynch's WCG before joining Millennium.
Summary
Steve Barbo, treasurer of the $12 billion hedge fund ExodusPoint, is leaving the firm after serving as one of the earliest hires at the New York-based manager. Barbo joined ExodusPoint before its official launch, following founders Michael Gelband and Hyung Lee from Millennium Management, where both had built their careers. His departure represents a notable personnel shift at a firm that has struggled with investor redemptions and modest performance relative to larger competitors.
The hedge fund has consolidated Barbo's treasury functions under Chief Financial Officer Erik Addington, who carries extensive experience from prior roles at major financial institutions. Addington joined ExodusPoint in 2018 after serving as CFO and treasurer at Nomura and previously worked at Lehman Brothers alongside Gelband. The consolidation reflects a streamlining of the fund's operational structure amid broader business challenges.
Barbo's career trajectory exemplifies the deep bench of financial talent that populated ExodusPoint at inception. He began as an analyst at Salomon Brothers in the early 1990s before transitioning into treasury roles at Archeus Capital, a hedge fund founded by former Salomon bond traders, and at Merrill Lynch's since-closed WCG hedge fund, prior to joining Millennium. As treasurer, Barbo would have maintained critical relationships with prime brokerage counterparties, monitored trade settlement processes, and managed foreign exchange balances—functions essential to a multi-billion-dollar operating hedge fund.
The departure coincides with performance headwinds and sustained investor outflows. ExodusPoint returned 2.2% through the first quarter of 2024, underperforming peers like Citadel and Millennium. More pressingly, the fund has experienced redemptions in consecutive years, with investors withdrawing $1 billion in 2023 alone. While ExodusPoint raised $1 billion last year to offset cumulative redemptions, the pattern suggests ongoing investor skepticism about the firm's prospects relative to larger, better-performing alternatives.
The hedge fund has consolidated Barbo's treasury functions under Chief Financial Officer Erik Addington, who carries extensive experience from prior roles at major financial institutions. Addington joined ExodusPoint in 2018 after serving as CFO and treasurer at Nomura and previously worked at Lehman Brothers alongside Gelband. The consolidation reflects a streamlining of the fund's operational structure amid broader business challenges.
Barbo's career trajectory exemplifies the deep bench of financial talent that populated ExodusPoint at inception. He began as an analyst at Salomon Brothers in the early 1990s before transitioning into treasury roles at Archeus Capital, a hedge fund founded by former Salomon bond traders, and at Merrill Lynch's since-closed WCG hedge fund, prior to joining Millennium. As treasurer, Barbo would have maintained critical relationships with prime brokerage counterparties, monitored trade settlement processes, and managed foreign exchange balances—functions essential to a multi-billion-dollar operating hedge fund.
The departure coincides with performance headwinds and sustained investor outflows. ExodusPoint returned 2.2% through the first quarter of 2024, underperforming peers like Citadel and Millennium. More pressingly, the fund has experienced redemptions in consecutive years, with investors withdrawing $1 billion in 2023 alone. While ExodusPoint raised $1 billion last year to offset cumulative redemptions, the pattern suggests ongoing investor skepticism about the firm's prospects relative to larger, better-performing alternatives.
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