Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Hedge fund Millennium Management has hired Goldman Sachs’ co-head of global equities in its latest raid on the US investment bank.
Erdit Hoxha, who was recently promoted to co-head of equities at Goldman Sachs, is joining Millennium’s Office of the Chief Investment Officer, according to two people familiar with the matter.
The New York-based hedge fund has a record of hiring Goldman alumni, with several of these employees in its senior investing leadership group known as the Office of the CIO.
Members of this group include co-chief investment officers Justin Gmelich and Paul Russo, both of whom spent decades at the investment bank, as well as rates, macro and commodities risk chief Scott Rofey and Jeff Verschleiser, global head of credit and mortgage risk. All four help to oversee risk within the firm’s key businesses, including equities, rates and credit.
Millennium founder Izzy Englander created the Office of the CIO in 2022 to oversee the multi-manager hedge fund’s risk management and investment operations. It is part of his plan to position the firm for life after he leaves while avoiding the usual power play that comes with picking a sole successor.
Millennium is one of the world’s most prominent and largest hedge funds with $86bn in assets and hundreds of trading teams across asset classes, including equities, commodities and fixed income.
Like Ken Griffin’s Citadel, Steve Cohen’s Point72 Asset Management and Dmitry Balyasny’s eponymous firm, it pioneered a new class of hedge fund that allocates money to hundreds of trading teams known as pods.
To fuel their rise, the multi-managers introduced a new “pass-through” fee model that allows them to charge investors costs, ranging from bonuses and client entertainment to Bloomberg terminals.
Englander last year sold a 15 per cent stake in Millennium to existing investors at a $14bn valuation and distributed equity to its top team, in a transaction facilitated by Goldman’s private markets unit Petershill Partners. It was the first time the founder had parted with equity in the group’s 37-year history.
Over the past few years, Millennium has implemented changes to create a more stable business.
The firm has moved investors into a multiyear share class that slows the rate at which investors can withdraw their money. It also diversified into new strategies such as private credit and added a 1 per cent management fee regardless of performance to generate more predictable revenues.
Hoxha, who is based in London, joined Goldman more than two decades ago as an analyst in the investment banking division and was made a partner in 2016.
He was named global co-head of equities last year as the bank identified a new generation of executives to lead its key businesses.
Millennium and Goldman declined to comment.