Jain to Return Cash, Exclusively Manage Millennium Money

Bobby Jain and Millennium Management have struck a deal that will see his eponymous hedge fund firm return all external cash and manage money exclusively for his former boss Izzy Englander’s hedge fund empire.

The proposed strategic partnership will give Millennium “exclusive access to the full investment capacity of Jain Global’s multistrategy business,” according to an internal memo seen by Bloomberg News. Jain will remain an independent business with its own investment processes, operating model and talent base, it said.

Multistrategy funds are already the most expensive in the industry because most of them transfer costs to investors via passthrough fees that are in addition to other charges. Spiraling costs to recruit and retain talent has further eaten into investors’ returns in recent years. Studies have shown clients only get about 40% of profits at established multistrategy funds, once costs are deducted.

Such setups are particularly brutal for new funds, as a partially deployed pool of capital must pay for the entire operation. As a result, Jain was immediately under pressure on performance.

The firm only managed to eke out a gain of 0.5% in 2024. While it made about $750 million in trading profits the following year, investors only saw about a quarter of those gains after accounting for fees and expenses. That equated to just a 3.7% return in a year when peers were handing double digit-gains to clients.

-Bloomberg