Hedge Fund Shifts: Millennium Gains Citadel Alum as Basis Trade Risks Loom
The hedge fund landscape continues to experience strategic personnel moves amid evolving market conditions, particularly concerning the basis trade. Millennium Management recently hired Daniel Mazur, a longtime stock picker from Citadel, while the broader industry grapples with potential fallout from the basis trade and talent competition.
Millennium Strengthens Stock Picking with Citadel Hire
Millennium Management has bolstered its stock-picking capabilities by recruiting Daniel Mazur from Citadel, as reported by Business Insider. This move follows Millennium’s earlier acquisition of Erdit Hoxha, cohead of global equities from Goldman Sachs, to join its Office of the CIO. These hires signal a commitment to expanding and strengthening its trading teams.
The Basis Trade and Veteran Traders
The basis trade, a strategy involving exploiting price discrepancies in Treasury futures and cash markets, has drawn attention due to potential risks. eFinancialCareers highlights that many top basis traders are veterans from firms like Lehman Brothers and Goldman Sachs, possessing experience navigating complex market dynamics. Jonathan Tipermas, formerly head of dollar swaps trading at Goldman Sachs and now at Citadel, is among those identified as key players in this space.
ExodusPoint and Balyasny Performance in 2025
Despite market volatility stemming from President Trump’s tariffs in the spring of 2025, several hedge funds demonstrated positive performance throughout the year. B17 News reports that Balyasny returned 10% for 2025, while ExodusPoint achieved a 12.3% gain. The S&P 500, in comparison, rose nearly 14% during the same period.
Eisler Capital’s Closure and the Talent War
The competitive landscape within the hedge fund industry is also marked by challenges. Eisler Capital, founded by former Goldman Sachs bigwig Ed Eisler, closed its doors in September 2025 after struggling with performance and the escalating costs of attracting and retaining top talent. Bloomberg noted the firm’s inability to compete in the ongoing “talent war.”
Rise of Multi-Strategy Funds
The industry has seen the emergence of large multi-strategy funds, including $12 billion ExodusPoint, $5 billion Jain Global, and $6 billion Taula Capital. Rupak’s Substack also notes that Eisler Capital successfully transitioned to a “pod shop” model, managing $3-4 billion in assets.