Hyung Lee, the co-founder of ExodusPoint Capital Management, has stepped down from his role as Head of Equities at the $12bn multi-strategy hedge fund firm and will now serve in an advisory role, according to a report by Bloomberg citing unnamed sources familiar with the matter.

Lee, along with Michael Gelband, launched ExodusPoint in 2018, making history with an $8bn debut – the largest ever for a hedge fund. However, while the firm's fixed-income division, led by Gelband, has been the primary driver of returns, the equities business has struggled to gain significant traction.

Since its inception, ExodusPoint’s performance has lagged behind its largest competitors, including this year, with the fund having gained 3.6% up to the end of July.

In his new advisory role, Lee will retain his 50% ownership stake in the firm. Gelband, who now oversees both fixed income and equities, has taken on the roles of Chief Investment Officer and Chief Executive Officer.

The day-to-day operations of the equities business will now be managed by Michael Lapsa, Head of Systematic Strategies, and Adam Galeon, Head of the Long-Short Equities operation, alongside Gelband, according to one of the sources.