Hedge fund Millennium withdraws funding; partnership with Engineers Gate ends

Ask AI · Is Millennium’s withdrawal of funds directly related to a dispute over liquidity terms?

【Hedge fund Millennium withdraws funds, partnership with Engineers Gate ends】Cailian She March 27 reports that Millennium Management is reclaiming the funds it had previously entrusted to Engineers Gate to execute trades. The two hedge fund firms had already agreed to end their cooperation, which had lasted for more than three years. An insider said that Engineers Gate will stop managing funds for Millennium before the end of the month. The person, who asked to remain anonymous because the relevant details are not public, said the two sides had agreed to wind up this separate managed account. One of the insiders said that Engineers Gate wanted the funds in the separate account to have liquidity terms the same as those of its own fund, including allowing quarterly redemptions in normal market conditions, and potentially setting redemption limits at the investor level during periods of stress. The two sides had been in talks about whether to restructure the cooperative relationship, but failed to reach agreement on these liquidity terms. An insider said that as of March 20 this month, Engineers Gate’s hedge fund had risen by 50 basis points, while it was down about 7% year to date. The insider said Engineers Gate is in the process of replacing Millennium’s funds, and its hedge fund’s assets under management in early April will be about $4.0 billion.