Millennium Management Hires Goldman Sachs’ Equities Co-Head
In a noteworthy development, hedge fund Millennium Management has fortified its team with the addition of Goldman Sachs’ co-head of global equities, Erdit Hoxha. This latest hiring continues Millennium’s trend of recruiting from the US investment bank. The news was confirmed by two insiders who wished to remain anonymous due to the sensitivity of the matter.
Hoxha Joins Millennium’s Office of the CIO
Hoxha, who was recently promoted to co-head of equities at Goldman Sachs, is set to join Millennium’s Office of the Chief Investment Officer. His appointment follows the New York-based hedge fund’s tradition of hiring Goldman Sachs alumni, many of whom are part of its senior investing leadership group, known as the Office of the CIO.
Office of the CIO: A Key Component of Millennium Management
The Office of the CIO at Millennium consists of several key members who are former Goldman Sachs employees. These 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 oversee risk within the firm’s crucial businesses, including equities, rates, and credit.
Millennium’s Strategic Plan and Positioning
Millennium’s founder, Izzy Englander, established the Office of the CIO in 2022 to oversee the multi-manager hedge fund’s risk management and investment operations. This move is part of Englander’s strategy to prepare the firm for a smooth transition after his departure, while avoiding the typical power struggles that accompany the selection of a single successor.
Millennium: A Leader in the Hedge Fund Industry
Millennium stands as one of the world’s most prominent and largest hedge funds, managing $86 billion in assets and boasting hundreds of trading teams across various asset classes, including equities, commodities, and fixed income. Like other industry leaders such as Ken Griffin’s Citadel, Steve Cohen’s Point72 Asset Management, and Dmitry Balyasny’s self-named firm, Millennium is a pioneer in a new breed of hedge fund that allocates capital to hundreds of trading teams, commonly known as pods.
Millennium’s Unique Fee Model
Multi-manager firms like Millennium have implemented a unique “pass-through” fee model. This approach allows these firms to charge investors for costs ranging from bonuses and client entertainment to Bloomberg terminals.
Englander’s Equity Sale in Millennium
Last year, Englander took a significant step by selling a 15% stake in Millennium to existing investors at a $14 billion valuation. This marked the first time the founder had parted with equity in the group’s 37-year history. The deal, facilitated by Goldman’s private markets unit Petershill Partners, also saw the distribution of equity to the top team at Millennium.
Millennium’s Business Stabilization Efforts
In recent years, Millennium has implemented changes to foster a more stable business environment. The firm has introduced a multiyear share class to slow the rate at which investors can withdraw their money. It has also diversified into new strategies such as private credit and added a 1% management fee irrespective of performance, thus generating more predictable revenues.
About Erdit Hoxha
Hoxha, based in London, has been with Goldman Sachs for more than two decades, starting his journey as an analyst in the investment banking division. He was elevated to the position of partner in 2016 and was named global co-head of equities last year as the bank identified a new generation of executives to lead its key businesses.
Both Millennium and Goldman Sachs have declined to comment on Hoxha’s move.
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