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ExodusPoint Capital Management
ExodusPoint Capital Management
ExodusPoint Capital Management
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ExodusPoint Capital Management (ExodusPoint) is an American investment management firm headquartered in New York City with additional offices in Europe and Asia. It currently holds the largest launch in history for hedge funds where it raised $8.5 billion in 2018 after it started accepting capital from external investors.[2][3][4]

Key Information

Background

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In early 2017, ExodusPoint was founded by Michael Gelband and Hyung Lee.[2][4][5][6] Both of them were previously employees at Millennium Management where Gelband was Head of Fixed income while Lee was Head of Equities.[2][4][5][6] Gelband was once seen as the heir to Israel Englander but after he was declined an ownership stake in the firm, he left to start ExodusPoint.[2][4][5][6] Several employees from Millennium Management also left to join the new firm.[2][5][6] Shortly after, Millennium Management filed an arbitration case against Gelband to stop him from poaching staff from it.[2][5][6] Although the results were not made public, it is believed that Gelband won the lawsuit and was able to take staff from Millennium Management to establish his firm.[6]

In 2018, ExodusPoint started accepting capital from external investors.[2][4] In June of that year, it launched with $8.5 billion in capital, making it the largest start-up hedge fund in history.[2][4] Instead of charging the standard management fee, ExodusPoint will pass on unlimited costs to investors. These fees are expected to be "substantial" over time, making it more expensive than its peers.[2]

Since launching, ExodusPoint has expanded rapidly by quickly increasing its headcount and opening new offices.[2][7] In October 2018, Schonfeld Strategic Advisors sued ExodusPoint to stop it from poaching its employees. ExodusPoint eventually won the lawsuit.[2][8][9]

Despite having a strong debut, ExodusPoint has struggled in its performance compared to its peers.[2][10] In 2019, ExodusPoint had a return of 6.8% compared to the Hedge Fund average of 9%.[11] In 2022, ExodusPoint had a return of 5.5% to 6% which was lower than its peers including Millennium Management which had over double the return at 12.4%.[12] One of the main reasons for its overall lackluster performance is the significant under-performance of its equities and quantitative finance businesses despite the large investments placed into them.[2][12]

Since its launch, ExodusPoint has only performed fundraising once in the spring of 2020 when it raised $3 billion.[12]

In recent years, the firm suffered from significant staff turnover and numerous senior executives have already left the firm.[2][10][12]

In 2023, investors withdrew $1 billion from ExodusPoint.[13]

See also

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References

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ExodusPoint Capital Management

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from Grokipedia
ExodusPoint Capital Management is a global multi-strategy and institutional investment management firm founded in 2017 by Michael Gelband, the former head of at Millennium Management, and Hyung Lee, which began managing external capital in 2018 with an initial $8 billion in (AUM). Headquartered in with additional offices in , Singapore, Stamford, Jersey, Dubai, , and , the firm currently oversees approximately $11.3 billion in AUM as of July 1, 2025, focusing on generating asymmetric returns through diversified, market-neutral strategies across liquid asset classes. The firm's investment approach integrates a range of strategies, including rates, , and macro, alongside equity strategies such as fundamental long/short, , and quantitative or event-driven , all underpinned by robust and capital allocation processes derived from multi-manager platform expertise. ExodusPoint emphasizes investor alignment via a transparent, cost pass-through fee structure and a collaborative team environment that leverages the founders' and employees' hands-on experience in building and operating large-scale investment operations. In 2024, ExodusPoint delivered an 11.3% return, its second-best annual performance since inception and outperforming the broader industry's average of 10.2% for the first 11 months of the year, amid favorable conditions like sustained high interest rates and a strong U.S. equity market. The firm has grown into one of the leading multi-strategy platforms, attracting talent from prominent hedge funds and maintaining a focus on innovation in trading and risk controls to navigate volatile global markets.

Founding and History

Founding

ExodusPoint Capital Management was founded in 2017 by Michael Gelband and Hyung Lee, both former senior executives at Management. Gelband, who joined in 2007 as global head of , departed the firm abruptly in 2017 after pushing for a larger ownership stake and greater autonomy, ultimately seeking to establish his own independent . Lee, who had served as a partner and global head of equities at , co-founded the firm alongside Gelband to leverage their complementary expertise in building a new investment operation. The firm was incorporated as a in April 2017, with its headquarters in , and initially funded through seed capital contributed by the founders and select early partners, with the intent to construct a multi-strategy platform entirely from the ground up. The firm transitioned to managing external investor capital in 2018.

Key Milestones

ExodusPoint Capital Management launched its external capital management operations in June 2018, raising a record $8.5 billion from investors, which marked the largest debut in history. In spring 2020, amid market volatility triggered by the , the firm conducted a subsequent round, securing an additional $3 billion in capital while rejecting billions more in inflows. In 2023, the firm raised $1 billion in new capital to offset investor redemptions. The firm's declined from $12.02 billion at the end of 2023 to $11.04 billion by June 2024, attributed to investor redemptions and performance-related fees. In December 2024, ExodusPoint expanded its bonus clawback policy to include senior non-investment staff, requiring repayment of up to 40% of 2024 bonuses for those departing before the end of 2025, as part of efforts to retain talent in a competitive industry landscape. By July 2025, the firm had recovered to $11.3 billion in , supported by stronger performance gains earlier in the year.

Leadership and Organization

Key Executives

Michael Gelband serves as the (CEO) and (CIO) of ExodusPoint Capital Management, as well as a co-founder of the firm. He joined at its inception in and brings extensive expertise in and macro trading. Prior to founding ExodusPoint, Gelband spent nearly a decade as Global Head of Fixed Income at Millennium Management LLC, where he oversaw the firm's bond trading operations. Before that, he held various senior roles at from 1983 to 2007 and briefly in , including as Global Head of Fixed Income and Capital Markets. Hyung Lee is a co-founder and partner at ExodusPoint, having played a pivotal role in its establishment in 2017. He previously served as Global Head of Equities at Millennium Management LLC, where he was responsible for the oversight of all equity strategies and related operations. At ExodusPoint, Lee initially led the equities division but transitioned to an advisory role in August 2024, having relocated to in 2020. His background emphasizes equities-focused leadership and operational management within multi-strategy hedge funds. Garrett Berg holds the positions of President and Chief Operating Officer (COO) at ExodusPoint, a role he assumed at the firm's launch in 2018, with the COO title added in 2024. He oversees daily operations, including technology infrastructure and . Before joining ExodusPoint, Berg was Global Head of Marketing and Investor Relations at Hoplite Capital Management and , and he began his career in financial services consulting at . Berg holds a BA in Marketing from and the CFA designation. Dev Joneja is the Chairman of Risk at ExodusPoint, having joined at launch in 2018. His expertise lies in quantitative risk management, developed through prior roles including Global Head of Risk at Millennium Management LLC and Head of Fixed Income Research at , an investment bank. Joneja holds a PhD in from and a BE in from the Indian Institute of Technology , underscoring his quantitative foundation in risk analytics. Kunal Kumar was appointed of ExodusPoint in January 2025, after joining the firm in 2023 as Head of Risk . He brings substantial experience in risk modeling and management from previous positions, including Co-Head of Risk at Balyasny International and Risk Manager at Eisler Capital, as well as roles at JP Morgan, , and . Kumar earned a BSc in Economics from , and an MSc in Investment Management from .

Organizational Structure

ExodusPoint Capital Management operates a pod-based multi-manager , in which portfolio managers function semi-independently, each allocated dedicated capital to pursue specialized across . This model enables the firm to support a diverse array of professionals, with capital allocations determined through rigorous evaluations of viability, expected returns, and profiles. The emphasizes flexibility, allowing pods to focus on liquid and equity while benefiting from centralized support in execution and research. The firm's key departments include investment teams specializing in fixed income and equities, alongside dedicated units for , compliance, and , operations, and . Risk management is overseen by a chairman and , ensuring firm-wide oversight of exposures; operations handle non-investment activities under the chief operating officer; legal and compliance functions are led by a and global chief officer; finance is managed by the ; and infrastructure, encompassing and quant capabilities, supports the overall platform. These departments collaborate to provide portfolio managers with robust resources, including and algorithmic tools. Governance at ExodusPoint is directed by its senior leadership, including the CEO and co-founder, through a committee that provides oversight from the founders' perspective. This structure prioritizes alignment with investors via a cost pass-through model, under which operational expenses are directly allocated to investors, fostering transparency and shared incentives without traditional fees covering all costs. In its early years from 2018 to 2020, ExodusPoint faced significant challenges in building out its technology infrastructure, including rushed development of a universal trading architecture for , execution, , and back-testing, which resulted in inadequate systems and underperformance in quantitative strategies. By 2021, these issues were largely resolved through investments in systems and a centralized quant- team, enabling diversification of returns and stabilization of the platform.

Investment Strategies

Core Strategies

ExodusPoint Capital Management operates a global multi-strategy platform that primarily focuses on and equity strategies to generate risk-adjusted returns. The firm's approach emphasizes diversification across liquid instruments, allowing for active while targeting low to broad market indices such as the S&P 500. In , ExodusPoint employs strategies across several subcategories, including rates, , and emerging markets & macro. Rates strategies involve trading rates, bonds, swaps, futures, positions, relative value trades, short-end rates, and inflation-linked instruments. strategies target liquid markets through fundamental long/short positions, index and options trading, macro approaches, new issuance opportunities, and methods. Emerging markets and macro strategies encompass in developed markets—such as rates, inflation, and commodities—as well as emerging market rates, foreign exchange, and equities. The equity side of the platform includes fundamental long/short strategies, which are research-driven and designed to be market- and sector-neutral. and systematic strategies feature diversified systematic approaches and mid-frequency across multiple . Additionally, quantitative and event-driven strategies seek to capture pricing anomalies arising from events like index rebalancings, initial public offerings, spin-offs, and share class arbitrages. A core emphasis of these strategies is the use of , market-neutral positions to minimize exposure to overall market beta. Portfolio construction is highly diversified, spanning more than 20 individual strategies, with dynamic capital allocation determined by factors including levels, volatility, return profiles, capacity constraints, , and overall portfolio impact. Alpha generation at ExodusPoint integrates quantitative models with discretionary insights, supported by a comprehensive platform that provides investment teams with capital, infrastructure, and resources.

Risk Management

ExodusPoint Capital Management employs a centralized overseen by its Executive Committee, with day-to-day operations led by Kunal Kumar under Chairman of Risk Dev Joneja, who joined the firm at its launch in 2018 after serving as Global Head of Risk at Millennium Management, as of July 2025. This structure utilizes proprietary models and sophisticated techniques for real-time monitoring, including position limits, exposure controls, and to mitigate portfolio risks across its multi-strategy platform. The firm's risk philosophy emphasizes capital preservation through diversification across complementary liquid strategies managed by experienced professionals, aiming to maintain low and limit net market exposure for consistent risk-adjusted returns in varying conditions. Scenario analysis is integral to this approach, incorporating stress tests for potential macro events such as geopolitical tensions or market volatility to identify vulnerabilities and adjust exposures proactively. To align incentives, ExodusPoint incorporates provisions in its compensation structure, requiring repayment of portions of bonuses under certain conditions, which supports accountability tied to overall firm performance and retention of key talent. Investor alignment is further reinforced through enhanced transparency, providing detailed reporting on portfolio holdings, metrics, and to foster trust and informed decision-making. Following periods of relative underperformance in 2022, where equities trading contributed to challenges and led to asset outflows, the firm has evolved its framework by integrating advanced , enhancing monitoring capabilities amid competitive pressures.

Performance and Assets

Assets Under Management

ExodusPoint Capital Management began operations with $8 billion in (AUM) in 2018, marking the largest launch at the time. The firm's AUM grew steadily, reaching a peak of $12.02 billion by the end of 2023. However, it experienced a decline to $11.04 billion by mid-2024, before recovering to $11.3 billion as of July 1, 2025. The investor base consists primarily of institutional investors, including pension funds, endowments, and sovereign wealth funds. ExodusPoint conducted a one-time in spring 2020, raising $3 billion, and another in 2023, raising $1 billion to offset redemptions. AUM fluctuations have been influenced by client redemptions in 2024, driven by fee pressures and below-average performance of 3.6% compared to the industry average of 6.3%. Inflows resumed in 2025, supported by strong returns exceeding 18% since July 2024, contributing to the AUM rebound. The fee structure features a 2% passed through directly to investors and a 20% performance fee subject to hurdles, such as outperforming cash equivalents. This pass-through model aligns costs with investors while tying incentives to net performance above benchmarks.

Historical Returns

ExodusPoint Capital Management recorded a return of 6.8% in 2019, underperforming the broader industry's average of 10.4% for that year. The firm achieved stronger results in 2020 with a 13.5% gain, benefiting from market recovery amid the , though it lagged in 2021 with 4.9%. In 2022, amid heightened market volatility, ExodusPoint returned 6.0%, trailing peers such as Citadel's 38.1% and Millennium's 12.4%, with losses attributed to challenges in strategies during the period's equity market . The firm improved in subsequent years, posting 7.3% in 2023 and 11.3% in 2024—its strongest performance since 2020—despite early-year flat returns of around 3.6% through July 2024 that contributed to client outflows and a $1 billion asset decline in the first half of the year. In 2025, ExodusPoint has emerged as a top performer among multi-strategy funds, achieving 14.2% year-to-date through October, surpassing Millennium's lower returns for the period and driven by gains in macro strategies, where approximately 75% of the firm's risk exposure is allocated. This marks a continuation of over 18% returns since July 2024, highlighting the firm's focus on low-volatility environments with an emphasis on Sharpe ratio-adjusted performance. Over multiple years, ExodusPoint's three-year annualized return stood at approximately 7.38% through mid-2025, reflecting steady compounding amid varying market conditions, though it has faced outflows in years of relative underperformance compared to high-flying peers like .

Operations

Global Offices

ExodusPoint Capital Management is headquartered in at 65 East 55th Street, serving as the primary hub for executive leadership, investment decisions, and global risk oversight. The firm established its international footprint shortly after its 2017 founding, opening offices in and in 2018 to support early expansion into European and markets. By 2020, additional Asia offices in and were operational, enhancing coverage of emerging markets and Japanese equities. In 2023, ExodusPoint opened its Dubai office in the to facilitate outreach and diversification. The London office, located at 20 St. James's Street, focuses on European equities and macroeconomic strategies, executing region-specific trades under New York-based oversight. Singapore and Hong Kong offices, at 77 Robinson Road and 18th Floor Prosperity Tower respectively, emphasize emerging markets, with recent expansions in Hong Kong leveraging favorable real estate conditions. The Tokyo office, situated at Level 2 Nijubashi Building, targets Japanese markets to support localized investment execution. In the United States beyond headquarters, the office houses quantitative research operations, contributing to the firm's data-driven strategies. The Jersey office at 28 Esplanade in specializes in alternative investments, acting as a sub-adviser for affiliated entities. The Dubai office, with nearly 25 staff as of 2024, drives Middle East-focused initiatives, including relocations of portfolio managers to bolster regional macro and equity pods. Each regional office integrates local market expertise while adhering to centralized from New York.

Workforce

As of July 1, 2025, ExodusPoint Capital Management employed 652 people globally. This figure represents a decline from the firm's peak headcount of approximately 688 in 2022, attributed to cost-control measures implemented in 2024 amid a reduction in assets under management. The 2024 headcount reduction amounted to approximately 15 positions from January to August, aligning with an approximately $1 billion drop in AUM during the first half of the year, prompting a focus on operational efficiency. The workforce composition at ExodusPoint features a significant portion dedicated to investment roles, including portfolio managers, analysts, and quantitative researchers. The remaining employees support functions such as , operations, and . Hiring draws from a diverse pool of talent, often sourced from leading multi-strategy firms like and Management, to bolster expertise in core investment areas. ExodusPoint pursues an aggressive talent acquisition strategy, particularly for portfolio managers, with over 35 such hires in 2023 alone to expand trading pods and strategies. The firm also invests in junior development through entry-level programs, such as the Junior Quantitative Modeler positions offered in 2025, which provide hands-on exposure to modeling and . Despite the 2024 reductions, hiring continued into 2025, including key quantitative roles filled from competitors like and Eisler Capital, signaling sustained growth in specialized areas. The firm's culture emphasizes collaboration and a collegial atmosphere, supported by a results-driven yet professional environment that fosters integrity and . In December 2024, ExodusPoint extended its bonus clawback policy to senior non-investment staff, requiring repayment of up to 40% of 2024 bonuses for departures before the end of 2025, as a measure to enhance retention amid industry-wide talent competition.

References

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