Key Takeaways
- • Townie Wells, head of fundamental equities at Jain Global, has left the multistrategy firm to launch a long/short equity hedge fund, according to Bloomberg.
- • Wells is in discussions with Millennium Management over a potential multibillion-dollar capital allocation, alongside plans to raise outside capital.
- • Jain Global generated approximately $750m in trading profits in 2025, with Wells cited as one of its most successful portfolio managers that year.
- • Goldman Sachs research indicates roughly half of hedge funds launched in 2025 received initial backing through separately managed accounts, versus 16% a decade earlier.
Summary
Townie Wells, head of fundamental equities at Jain Global, has departed the multistrategy investment firm to launch his own long/short equity hedge fund, according to a report by Bloomberg. The New York-based portfolio manager left last week and plans to raise additional capital from external investors, alongside a potential multibillion-dollar commitment from Millennium Management, with which discussions are ongoing. Wells, a former Citadel trader, was among Jain Global's most successful portfolio managers in 2025, when the firm generated approximately $750m in trading profits.
The departure follows a difficult period for Jain Global's equities business. Founder Bobby Jain stepped in to help oversee the strategy during the second quarter of 2026. The firm subsequently returned all external investor capital and, at the beginning of September, transitioned to managing money exclusively for Millennium.
Wells had explored launching an independent hedge fund three years ago, when he also held discussions with Millennium over a potential multibillion-dollar allocation. His current plans reflect the growing role of separately managed accounts (SMAs) in financing new launches. According to Goldman Sachs research, approximately half of hedge funds launched in 2025 received initial backing through SMAs, compared with 16% a decade earlier, and among launches using these arrangements, managed account allocations averaged 84% of initial assets.
The move is part of a wave of high-profile portfolio managers establishing independent firms with substantial institutional backing. Former Sequoia Capital investor Jeff Wang recently launched a technology-focused hedge fund with more than $1bn, while former Coatue Management trader Daniel Senft raised $2.5bn for NX1 Capital in January. Fundraising conditions nonetheless remain challenging: Hedge Fund Research data shows approximately 3,200 hedge funds have launched since 2020, while more than 3,100 have closed over the same period.
The departure follows a difficult period for Jain Global's equities business. Founder Bobby Jain stepped in to help oversee the strategy during the second quarter of 2026. The firm subsequently returned all external investor capital and, at the beginning of September, transitioned to managing money exclusively for Millennium.
Wells had explored launching an independent hedge fund three years ago, when he also held discussions with Millennium over a potential multibillion-dollar allocation. His current plans reflect the growing role of separately managed accounts (SMAs) in financing new launches. According to Goldman Sachs research, approximately half of hedge funds launched in 2025 received initial backing through SMAs, compared with 16% a decade earlier, and among launches using these arrangements, managed account allocations averaged 84% of initial assets.
The move is part of a wave of high-profile portfolio managers establishing independent firms with substantial institutional backing. Former Sequoia Capital investor Jeff Wang recently launched a technology-focused hedge fund with more than $1bn, while former Coatue Management trader Daniel Senft raised $2.5bn for NX1 Capital in January. Fundraising conditions nonetheless remain challenging: Hedge Fund Research data shows approximately 3,200 hedge funds have launched since 2020, while more than 3,100 have closed over the same period.
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