Diego Megia, a former senior money manager at Millennium Management, is set to expand his hedge fund, Taula Capital Management, by raising an additional $1bn following the firm's $5bn launch earlier this year, one of the largest in hedge fund history, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter, as revealing that Taula plans to secure the new capital from existing investors between December and March. If successful, the fund’s total assets will surpass $6bn, surpassing Bobby Jain’s $5.3bn Jain Global launch earlier this year and following in the footsteps of Millennium alum Michael Gelband’s $8bn ExodusPoint launch in 2018.

A representative for Taula declined to comment.

Megia’s initial capital raise was bolstered by a $3bn allocation from Izzy Englander’s Millennium Management, which has increasingly partnered with external hedge funds to manage portions of its $70.2bn in assets. Other funds supported by Millennium include Delta Global Management and Lorenzo Rossi’s Kedalion Capital Management.

Megia founded Taula Capital after building an impressive track record in global government bond trading. He joined Millennium in 2019 after two years at Citadel, where he led a global government bond trading team. At Taula, he has emphasised macro strategies, fixed-income relative value, and inflation-risk trading, aiming to carve a niche in these specialised areas.