A hedge fund launched in 2024 by former Millennium executive Bobby Jain is set to manage capital exclusively for Millennium Management under a new deal, according to an internal memo. The firm plans to return external investor funds in the third quarter.
Despite managing around $6 billion and remaining independent, the move reflects the challenges of building a multi-strategy hedge fund at scale. Larger firms like Citadel and D E Shaw dominate the industry with significantly greater assets and scale advantages.
Bobby Jain had aimed to build a firm to rival giants like Millennium Management, but launching a large multi-strategy hedge fund has proved costly and difficult.
Running across multiple asset classes requires expensive infrastructure and fierce competition for top talent, challenges worsened by recent market volatility. The fund has returned about 0.6% this year. Jain also hired over 200 professionals globally, launching with several divisions at once rather than scaling gradually.
The launch was ambitious and came amid a tough fundraising environment for new firms. Although Bobby Jain secured $5.3 billion in commitments, the fund used a drawdown model, calling capital in stages. In internal messages, Jain described the deal as a positive step despite modest returns, saying it would help accelerate growth at a time when scale and resources are key to success.
