Key Takeaways
- • October 2026 was a brutal month for nearly every hedge fund strategy, with multi-strategy giants Millennium Management and Balyasny Asset Management both losing money, according to Business Insider.
- • Kirkoswald Capital, the macro firm run by Greg Coffey, posted its worst month on record with a drop of more than 6%, though its year-to-date gains remain above 16%, per a person close to the manager.
- • Pink slips are spreading across the industry: Walleye Capital and Engineers Gate cut senior leaders including Anil Gondi and Mike Daylamani, while Brevan Howard, a $35 billion manager, shed five credit portfolio managers as credit-trading head Andy Silver moved to an advisory role.
- • Multi-strategy funds turn over roughly 20% of their portfolio managers each year on average, so further departures are a structural expectation rather than an anomaly.
- • Brevan Howard's two largest funds, Alpha Strategies and its Master fund, were both roughly flat year to date, and the article suggests the losses may not be over as AI-linked stocks tumbled following Democratic gains in midterm elections.
Summary
According to Business Insider, October was a difficult month across hedge fund strategies, regardless of focus. Multi-strategy platforms Millennium Management and Balyasny Asset Management both lost money, while macro manager Greg Coffey and credit investor Hamza Lemssouguer drew attention for losses. Business Insider reports that the decline continued as artificial-intelligence-linked stocks fell on Thursday following Democratic gains in Tuesday's midterm elections.
The losses have been accompanied by personnel changes. Walleye Capital and Engineers Gate cut senior leaders, including Anil Gondi and Mike Daylamani respectively, along with other equity-focused staff. Balyasny's Corbets unit also lost investors in October. Macro traders faced rising interest rates, war-driven oil price swings and an electoral surprise in Brazil. Kirkoswald Capital recorded its worst month on record, dropping more than 6%, though its year-to-date gains remain above 16%, a person close to the manager told Business Insider.
Macro desks have also seen departures. ExodusPoint saw two PMs leave its Dubai office less than a year after joining and recently cut currency-trading veteran Jim Leitner, according to a person close to the manager. In credit, Arini Capital's Lemssouguer has sold hundreds of millions of dollars in positions during a drawdown, yet he met investors at Bank of America's industry conference in Miami, per an attendee. Arini declined to comment.
Credit teams at other platforms have also been affected. Manav Gupta, who joined Millennium earlier this year, has left Izzy Englander's fund. Brevan Howard, which manages $35 billion, shed five credit portfolio managers as Andy Silver transitions to an advisory role, and its two largest funds were roughly flat on the year. Business Insider notes the article's broader view that the pressure on the industry is intensifying, quoting one longtime portfolio manager who said the environment is "adult swim now" and who had survived "for now."
The losses have been accompanied by personnel changes. Walleye Capital and Engineers Gate cut senior leaders, including Anil Gondi and Mike Daylamani respectively, along with other equity-focused staff. Balyasny's Corbets unit also lost investors in October. Macro traders faced rising interest rates, war-driven oil price swings and an electoral surprise in Brazil. Kirkoswald Capital recorded its worst month on record, dropping more than 6%, though its year-to-date gains remain above 16%, a person close to the manager told Business Insider.
Macro desks have also seen departures. ExodusPoint saw two PMs leave its Dubai office less than a year after joining and recently cut currency-trading veteran Jim Leitner, according to a person close to the manager. In credit, Arini Capital's Lemssouguer has sold hundreds of millions of dollars in positions during a drawdown, yet he met investors at Bank of America's industry conference in Miami, per an attendee. Arini declined to comment.
Credit teams at other platforms have also been affected. Manav Gupta, who joined Millennium earlier this year, has left Izzy Englander's fund. Brevan Howard, which manages $35 billion, shed five credit portfolio managers as Andy Silver transitions to an advisory role, and its two largest funds were roughly flat on the year. Business Insider notes the article's broader view that the pressure on the industry is intensifying, quoting one longtime portfolio manager who said the environment is "adult swim now" and who had survived "for now."
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