Key Takeaways
- • Millennium Management withdrew more than $1.5bn in leveraged capital from two external hedge funds, Troluce Capital Advisors (over $1bn) and Axebrook Capital ($500m), following investment losses at both firms, according to Bloomberg.
- • Axebrook Capital was established by Jack Land roughly five years ago after a spinout from York Capital Management; Troluce is an event-driven manager that recently expanded beyond its flagship hedge fund strategy.
- • Both Troluce and Axebrook are expected to continue operating despite the redemptions.
- • The move underscores the withdrawal risk facing smaller managers that depend on capital from large multistrategy platforms, which carry stringent risk limits.
- • Millennium, with more than $95bn in assets and over 370 investment teams, recorded an 8.1% gain for the year through September, with performance broadly flat in the month.
Summary
Millennium, the $95bn-plus hedge fund founded by Izzy Englander, is withdrawing more than $1.5bn in leveraged capital from two external hedge funds following investment losses, according to a report by Bloomberg. The firm has redeemed more than $1bn from event-driven manager Troluce Capital Advisors and a further $500m from Axebrook Capital.
The withdrawals were reportedly prompted by losses at both firms. Troluce and Axebrook are expected to continue operating. Troluce has recently expanded its trading activities beyond its flagship hedge fund strategy. Axebrook was established by Jack Land approximately five years ago following a spinout from York Capital Management.
Millennium has increasingly allocated capital to external managers as part of its broader model, with dozens of its more than 370 investment teams operating outside the firm. Such arrangements give smaller hedge funds access to substantial capital and infrastructure, but also expose them to stringent risk limits and the possibility of rapid withdrawals after underperformance.
The decision comes as multistrategy hedge funds face growing scrutiny over portfolio leverage, risk management and capital allocation across their investment teams. Millennium has remained relatively resilient amid recent market volatility, recording an 8.1% gain for the year through September, with performance broadly flat during the month.
The withdrawals were reportedly prompted by losses at both firms. Troluce and Axebrook are expected to continue operating. Troluce has recently expanded its trading activities beyond its flagship hedge fund strategy. Axebrook was established by Jack Land approximately five years ago following a spinout from York Capital Management.
Millennium has increasingly allocated capital to external managers as part of its broader model, with dozens of its more than 370 investment teams operating outside the firm. Such arrangements give smaller hedge funds access to substantial capital and infrastructure, but also expose them to stringent risk limits and the possibility of rapid withdrawals after underperformance.
The decision comes as multistrategy hedge funds face growing scrutiny over portfolio leverage, risk management and capital allocation across their investment teams. Millennium has remained relatively resilient amid recent market volatility, recording an 8.1% gain for the year through September, with performance broadly flat during the month.
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