The Story of Millennium Management
Millennium Management, the renowned multistrategy hedge fund led by Izzy Englander, is known for its zero tolerance towards drawdowns. Despite this reputation, two senior portfolio managers at the fund have managed to retain their positions despite being associated with significant losses.
Meet Pratik Madhvani
Pratik Madhvani, a 39-year-old trader with a background at Citi, is believed to head one of Millennium’s largest trading pods. Despite being linked to substantial drawdowns twice in the past year, Madhvani continues to play a key role at the firm. Based in Dubai, Millennium reportedly set up an office there to accommodate Madhvani when he joined from Tibra in 2020. His team now consists of over 20 members.
Introducing Glen Scheinberg
Glen Scheinberg, a 38-year-old former vice president at Goldman Sachs, leads another prominent pod at Millennium called SRBL. Alongside Scheinberg are Michael Rems, James Brophy, and Richard Li, all of whom followed him from Goldman Sachs. With a team of over 20 individuals, Scheinberg’s pod is a significant player within the fund.
Recent reports have indicated that Madhvani and Scheinberg’s pods were at one point down “hundreds of millions,” impacting Millennium’s overall performance. This trend was also observed earlier in the year, with the two pods collectively losing $900 million in a three-month period.
Index-Rebalancing Strategies and Risks
Both Madhvani and Scheinberg employ index-rebalancing strategies, aiming to capitalize on changes in stock weightings within indices. These strategies can be lucrative but also carry inherent risks, as demonstrated by recent market events that caught some funds off guard.
Millennium typically maintains a low-risk tolerance, with portfolio managers facing consequences for significant losses. Despite this, Madhvani and Scheinberg have managed to remain in their roles, likely due to their track record of generating substantial profits for the firm.
The Success of Madhvani and Scheinberg
Madhvani and Scheinberg are among Millennium’s top performers, having reportedly generated billions in profits during their tenures. Their occasional losses, while significant, indicate that they oversee multibillion-dollar portfolios or benefit from a degree of leniency given their track record.
Both managers are highly sought after by potential recruits, with Scheinberg’s success reflected in his recent purchase of a $37 million property in Puerto Rico. Despite occasional setbacks, Madhvani and Scheinberg’s pods remain popular choices within Millennium.
For more information on Pratik Madhvani and Glen Scheinberg, visit here.
