Two teams focused on trading index changes at Millennium Management made billions of dollars between them in June, lifting the multistrategy hedge fund's monthly gains.
Pods run by Glen Scheinberg and Pratik Madhvani made about $3.7 billion in total last month, according to people with knowledge of the matter. The gains accounted for more than half of the about $6.6 billion profit generated by Millennium before fees in June, the people said, asking not to be identified because the details are private.
A representative for Millennium, which manages about $89 billion across more than 330 teams, declined to comment.
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Scheinberg and Madhvani specialize in index rebalancing trades, which involves highly leveraged bets on which securities will enter or exit various indexes. This strategy, along with bond basis trading, are core to many multistrategy hedge funds looking to deploy large chunks of capital and earn steady overall returns.
Five events in June created a particularly rich environment for index rebalancing strategies: the S&P 500 quarterly rebalancing, Nasdaq 100's quarterly changes, Russell's annual reconstitution, the fast-track inclusion of SpaceX and quarter-end multi-asset rebalancing.
New York-based Scheinberg runs the larger of the two index-rebalancing teams, a group known as SRBL, while Dubai-based Madhvani manages the other team. Their trading helped Millennium to post a 4.1% gain last month, boosting year-to-date returns to 10.5%.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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