Millennium delivers double-digit returns in 2025 but lags behind rivals
Izzy Englander’s hedge fund recovers after lacklustre start to year but fails to keep pace with some smaller firms
Hedge fund giant Millennium delivered returns of 10.5 per cent to investors in 2025, recovering after a lacklustre first half but still lagging behind many smaller rivals in the “multi-manager” sector.
Izzy Englander’s firm was briefly in the red in the first few months of last year, along with rival Citadel, as markets were rocked by US President Donald Trump’s trade war.
But Millennium, which manages $83.5bn, recovered to gain 2.2 per cent after six months of 2025, with steady returns in the second half carrying it to a 10.5 per cent return net of fees, according to a person that had seen the numbers. Citadel was up 9.3 per cent by December 18, according to another person who had seen the numbers.
The recoveries partly reflect a return to more normal market conditions after Trump backed away from many of his most aggressive tariffs, allowing equity indices to chalk up strong gains by the end of the year. The S&P 500 finished 16.5 per cent higher while the UK’s FTSE 100 gained 21.5 per cent.
Millennium was outshone by many of its smaller rivals in the multi-manager sector, including ExodusPoint, which gained 18 per cent, according to a person that had seen the numbers.
Multi-manager firms have risen to the top of the hedge fund industry over the past several years by operating hundreds of trading teams known as “pods” across multiple asset classes such as equities, bonds and commodities. These hedge funds are known for heavy use of borrowing to juice their returns but also strict central risk management that often forces traders to quickly exit losing positions.
In addition, they charge investors higher fees than traditional hedge funds, by passing through a host of costs such as bonuses and client entertainment directly to investors.
Their model has generally delivered consistent returns over the past decade, satisfying a desire from large investors such as pensions for steady profits.
These firms do not benchmark themselves against equity indices such as the S&P 500, instead trying to make their investors money whether stocks rise or fall. For instance, many multi-manager firms were up in 2022 when equity markets sustained big losses.
Elsewhere, macro hedge funds had their best year since 2008, with Bridgewater’s Pure Alpha hedge fund up 33 per cent to December 29, the most profitable year for the firm since it was founded 50 years ago.
Millennium, ExodusPoint, Bridgewater and Citadel declined to comment.