Kodai Capital Management, an equity-focused hedge fund backed by Millennium Management, is returning capital to all of its investors having only recently opened to external capital, according to a report by Bloomberg citing unnamed sources familiar with the situation.
Founded in 2020 by Neville Shah and Joon Park, Kodai carved out a niche by investing in companies undergoing innovation-driven change, with a particular focus on tech and disruptive sectors. The fund initially operated exclusively as a Millennium platform, before branching out to other investors last year. As of 1 February, Kodai had roughly $690m in non-Millennium capital, per investor documents reviewed by Bloomberg.
While neither Kodai nor Millennium have commented publicly, sources say the decision comes amid brutal market conditions for tech names, which have been hammered by trade tensions and macro uncertainty. The Nasdaq Composite Index is down around 16% year-to-date, weighed down by President Trump’s tariff battles and rising interest rate expectations.
Kodai’s decision to wind down follows a broader recalibration in the equity long-short space, where volatility, crowding, and factor reversals have made it difficult for some managers to maintain consistent performance.
Both Shah and Park are Citadel alumni: Shah previously ran a portfolio of technology, media, and telecom stocks, while Park also held senior investment roles before co-founding Kodai in Chicago.
