Millennium Investors Redeem $3 Billion

Millennium Management Redemptions

Investors in Millennium Management Pull $3 Bil in October


A cautionary tale for hedge fund managers considering loosening terms with investors is that of Millennium Management.   The hedge fund firm made it easier for limited partners to redeem from their investments, allowing investors to pull about $3 billion in October--27% of its AUM.  As managers consider different ways to entice investors back into their funds many have changed terms to make redemptions easier, a big complaint when investors could not withdraw their investment from fund during the financial crisis.
Investors yanked billions from Millennium Management after the hedge fund made it easier to redeem their investments.
All told, the New York-based hedge fund returned about $3 billion in October, roughly 27% of its assets under management. The firm now runs about $8 billion, Reuters reports.
After the third quarter, Millennium changed its liquidity terms, giving investors the option of withdrawing a quarter of their assets every quarter, or all of it annually. The firm imposed no gate or other withdrawal restrictions during the financial crisis.
Millennium is up 15% through November.

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