ExodusPoint Capital Management Sees $1 Billion Drop in Assets Under Management in First Half of 2024
By Carolina Mandl
ExodusPoint Capital Management, founded by Michael Gelband and Hyung Lee, reported a significant $1 billion decrease in assets under management in the first half of 2024, as per a recent regulatory filing. The firm's assets fell from $12.02 billion at the end of last year to $11.04 billion on June 30.
While the filing did not specify the reason for the drop, a source familiar with the matter attributed it to client withdrawals. ExodusPoint has been closed to new investments since last year and has not been replenishing capital, according to another inside source.
ExodusPoint, which focuses on trading fixed income and equities assets across various strategies, has lagged behind its peers this year with gains of only 3.6% through July. In comparison, multi-strategy hedge funds on average saw gains of 6.3% during the same period, with Citadel, led by Ken Griffin, outperforming with gains of 8.82%.
The fund has also undergone internal changes, with co-founder Hyung Lee stepping down as head of equities to become an adviser, while Michael Gelband has taken over as chief investment officer.
Investors have shown a growing preference for more selective multi-strategy funds, with global appetite for expensive multi-strategy hedge funds on the decline. This trend was highlighted in a recent Goldman Sachs survey, which indicated a shift away from funds that pass on all expenses related to money management to clients.
In a similar development, former Millennium co-chief investment officer Bobby Jain launched his multi-strategy hedge fund Jain Global with $5.3 billion in investment commitments, falling short of his initial target.
In conclusion, ExodusPoint Capital Management's recent decline in assets under management reflects broader trends in the industry, where investors are becoming more discerning and selective about where they allocate their capital. This shift highlights the importance of staying informed about market developments and trends to make informed decisions about investment opportunities.