ExodusPoint vs Jain Global: A Tale of Two Multistrategy Hedge Funds
It wasn’t so long ago that ExodusPoint, the fund founded in 2018 by Michael Gelband, was the limping dog of the multistrategy hedge fund world. Times, however, have changed.
Last year, Bloomberg reported that ExodusPoint generated returns of 18.4%. In comparison, it outperformed both Citadel’s Wellington Fund (10.2%) and Millennium (10.5%). This achievement is remarkable considering Gelband’s background as the head of the fixed income division at Millennium.
On the other hand, Jain Global, founded by Bobby Jain, Gelband’s former colleague and Millennium’s ex-co-chief investment officer, reported returns of only 3.7%. As Jain Global faces redemption requests and criticism over its investment strategies, ExodusPoint’s success serves as a reminder that multistrategy hedge funds can take time to establish themselves.
Similar Beginnings, Different Trajectories
ExodusPoint and Jain Global both made headlines as major hedge fund launches, with ExodusPoint starting with $8bn and Jain Global with $5.3bn. However, both funds faced challenges in their early days. ExodusPoint initially struggled with low returns and significant redemptions, but it has since turned the tide.
ExodusPoint’s journey has not been without obstacles, as the fund had to downsize its portfolio managers and has been cautious about expanding its team. In contrast, the industry saw a 64% increase in headcount for multistrategy hedge funds, but ExodusPoint opted for a more conservative approach.
Differences in Strategy
While ExodusPoint focuses 75% of its risk on fixed income funds, which has contributed to its recent success, Jain Global has adopted a more diversified approach covering all asset classes, including commodities. This diversification should help Jain Global navigate various market conditions effectively.
Furthermore, Jain Global has invested significantly in a centralized and scalable infrastructure platform, which may result in higher costs initially but is expected to pay off as the fund’s assets under management grow. With a solid foundation in place, Jain Global is poised for growth in 2026.
Looking Ahead
As ExodusPoint continues its upward trajectory, Jain Global can learn valuable lessons from its counterpart’s resilience and adaptability. By leveraging its diversified strategy and robust infrastructure, Jain Global has the potential to overcome current challenges and thrive in the competitive hedge fund industry.
For more information, visit here.
