Schonfeld Strategic Advisors has filed a lawsuit against portfolio manager Adam Grunfeld, accusing him of reneging on a pre-agreed move to join the firm and seeking damages of around $11m tied to the aborted hiring deal, according to a report by Bloomberg.
The case, filed in New York state court, centres on claims that Grunfeld agreed after months of negotiations to leave Millennium Management and join Schonfeld, before abruptly reversing course in March and remaining at his current employer.
Schonfeld alleges that the agreement included a contractual penalty of $11m in the event the portfolio manager failed to follow through on the move. The firm is now seeking to enforce that payment, alongside additional damages related to alleged confidentiality breaches and what it describes as an attempt to renegotiate terms at Millennium.
While the complaint does not explicitly use the term, the dispute reflects what industry participants increasingly refer to as “gazumping” — where a planned hire is derailed before commencement, often amid last-minute counteroffers or renegotiations during the hedge fund talent wars.
According to the filing, Grunfeld had been introduced via a recruiter earlier this year and engaged in extended discussions before agreeing to resign from Millennium. The suit claims he later informed Schonfeld that he would not proceed with the move or honour the employment agreement.
Grunfeld has reportedly not publicly commented on the allegations, and representatives for Millennium declined to comment.
Schonfeld argues that it had positioned Grunfeld as a long-term hire who could contribute both trading performance and broader investment insight, and says the agreed penalty was intended to cover recruitment costs and the opportunity cost of passing on other candidates.
