Millennium Management continues to cement its position as one of the largest hedge fund allocators, further increasing its investments in third-party hedge funds, according to our research.
Already the leading multi-strategy allocator by notional asset value, Izzy Englander’s United States $84 billion firm has at least 32 active external hedge fund allocations, up from 24 a year ago. Allocation sizes vary, with some exceeding United States $3 billion in notional asset value.
Based on our analysis of SEC filings, the largest multi-strategy hedge funds have expanded their external allocation programs, with capital allocated to at least 128 external managers. The number of known active allocations among firms featured in our research last year has increased from 66 to 89.
New Holland appears in this year’s research for the first time, with at least 31 third-party allocations. Schonfeld has 30 active allocations, up from 27 last year. Walleye now has at least 14 external separately managed accounts, an increase of six from 2025. Verition has increased its external allocation count from two in 2025 to at least six in 2026.
Point72 has also expanded its roster of external managers, rising from three allocations in 2025 to five in 2026.
ExodusPoint has reduced the number of third-party managers it backs, despite recently agreeing a deal with event-driven fund manager Melqart Asset Management. The firm’s only other known external allocation is to global macro fund manager Forada.
Squarepoint is another new addition to this year’s research, although it has been allocating to external managers for the past four years. The firm has approximately 13 managers on its roster, including credit fund manager Arini. Most recently, the London-based quantitative fund manager allocated capital to Keal Capital, which runs a macro relative value strategy.
The vast majority of external managers are independent firms that already manage allocator capital and have also secured allocations from multi-strategy fund managers.
Notable allocations include Millennium’s investments in Jain Global, Kedalion, and Taula, as well as Walleye’s and Squarepoint’s respective allocations to FIFTHDELTA.
We are also tracking at least 100 additional separately managed account allocations completed by smaller multi-strategy fund managers.
Our research highlights how multi-strategy firms are becoming increasingly flexible in how they deploy capital. Many are using external allocations to diversify returns, access specialist talent, and broaden their exposure to different trading strategies.
The rationale varies by firm. Some use external allocations to gain access to strategies they cannot easily build internally. Others view them as an efficient way to deploy capital more quickly.
Several managers have attracted allocations from multiple leading multi-strategy firms. These include Ardmore Road, founded by Chris Connor, One Eleven Capital, Interval Partners, Gillson Capital, Merewether Investment Management, and Benchstone Capital.
Qube Research & Technologies is among the most active firms in this market, although complete data for the United States $40 billion manager was not available for this research. We have identified at least 10 third-party allocation deals completed by the firm over the past 12 months.
We revealed in November that Brevan Howard was building an external allocation platform focused on long/short equity managers. Earlier this month, the firm hired a UBS veteran to lead its United States effort.
All firms featured in this research have been contacted for comment.
