Multi-strategy major Millennium Management is unwinding a significant capital allocation to quantitative manager Engineers Gate, bringing an end to a partnership that has lasted more than three years, according to a report by Bloomberg.
The report cites unnamed sources familiar with the situation as revealing that the separately managed account (SMA) through which Millennium provided capital will cease operations by the end of this month. The decision to dissolve the vehicle was mutual, though it followed unsuccessful negotiations regarding the terms of the relationship.
Discussions between the two multi-strategy firms reportedly centred on liquidity provisions, with Engineers Gate seeking to align the liquidity profile of the Millennium SMA with that of its main hedge fund – specifically, allowing for quarterly redemptions under normal conditions and the ability to impose investor-level gates during periods of market stress. When the two sides were unable to reach an agreement on these terms, they opted to wind down the mandate.
The scale of the allocation varied depending on the methodology used. Sources indicate that Millennium viewed the mandate as a $3.6bn exposure when accounting for leverage, while Engineers Gate assessed the direct capital commitment at approximately $1.5bn.
Engineers Gate is currently in the process of backfilling the capital. The firm expects to begin April with around $4bn in assets under management across its main hedge fund.
Performance data shared by sources shows that Engineers Gate’s hedge fund had gained 50 basis points month-to-date as of 20 March. However, the fund remains down roughly 7% for the 2026 calendar year. This follows a positive performance trajectory in recent years, with the fund posting gains of 7.1% in 2025, 10.3% in 2024, 13.5% in 2023, and 18.8% in 2022.
The decision to part ways comes just months after Millennium increased its commitment to Engineers Gate by $300m as part of the latter’s most recent capital raise.
Representatives for both Millennium and Engineers Gate reportedly declined to comment on the matter
