ExodusPoint Capital outperformed its multi-strategy hedge fund peers in September, posting a 1.5% gain, bringing its year-to-date return to 6.5% for 2024, according to a report by Business Insider citing an unnamed source familiar with the firm.
The $11bn asset manager’s sector-leading gains come just before it the introduction a new cash hurdle next month, requiring it to outperform short-term Treasury bonds in order to earn performance fees.
The new share class structure is part of a broader trend among institutional investors pushing hedge funds to align fees with performance and justify rising costs. The change follows a period of redemptions and underwhelming returns relative to the firm’s competitors.
Several other prominent multi-strategy hedge funds also posted positive returns in September. ExodusPoint founder Michael Gelband’s former employer, Millennium Management, reported a 1.1% gain last month, bringing its 2024 return to 9.5%, while Schonfeld Strategic Advisors saw its flagship fund gain 1.1% in September, pushing its year-to-date performance to 13.1%. Schonfeld’s fundamental equities fund put on 0.2% last month and is up 12% year-to-date.
Ken Griffin’s Citadel meanwhile, underperformed most of its peers in September, its the firm’s flagship Wellington fund flat for the month but still up nearly 10% on the year. Citadel’s Tactical Trading fund, which focuses on equities and quantitative strategies, gained 0.9% in September, bringing its 2024 return to 15.6%.
Walleye Capital, which manages $5 billion in assets, was one of the few multi-strategy funds to post a loss in September, slipping 0.2%. Despite the setback, the firm is still up 11.1% for the year.
