Millennium Management has committed approximately $800m to credit-focused manager Mycor Capital Management, underscoring the continued expansion of large multi-manager platforms allocating capital to external hedge funds through separately managed accounts, according to a report by Bloomberg.
The allocation is expected to lift Mycor’s assets under management to around $2.5bn and will run alongside the firm’s flagship credit strategy. According to people familiar with the arrangement, Mycor’s core fund has delivered returns of 5.6% year-to-date through May and has generated annualised gains of roughly 10.3% since its launch in mid-2023.
Neither Millennium nor Mycor reportedly commented on the transaction.
The move reflects a broader structural shift among large multi-strategy hedge funds, which have increasingly deployed capital externally as they seek additional capacity and diversification for rapidly expanding asset bases. Millennium, which now manages close to $90bn, has more than doubled in size since 2020 and has steadily increased the proportion of capital allocated outside its internal portfolio teams.
Industry estimates suggest external hedge fund allocations now account for roughly 10% of Millennium’s investment exposure across more than 330 portfolio teams. The approach allows the firm to access specialist strategies while maintaining its pod-based internal structure.
The trend is not limited to Millennium. Other multi-manager platforms, including Point72 Asset Management, Balyasny Asset Management and Schonfeld Strategic Advisors, have also expanded their use of external hedge fund partnerships as part of broader efforts to deploy capital efficiently across credit, equity and macro strategies.
Mycor, based in Stamford, Connecticut, focuses on credit markets including leveraged loans and high-yield bonds, and also incorporates macro-driven positioning across rates and related instruments. The firm was founded by a group of senior industry figures, including Josh Samuelson, co-founder of PointState Capital, and Dan Allen, former president of Anchorage Capital Group, who serve as co-chief executives.
