At least four traders from UBS’ hedge fund arm have left to join Israel Englander’s Millennium Management.
Millennium’s promise of signing bonuses and offers to replace deferred compensation attracted UBS O’Connor portfolio managers to the firm, according to a Bloomberg article
Because Millennium is one of the few hedge funds that shares its annual operating costs with clients instead of charging a fixed management fee, the firm is able to dig into its cash load to compensate employees.
eVestment reported last week that UBS O’Connor cut 16 of 46 positions in its equity fund due to compensation restructuring. The firm lost a total of at least six equity traders this year to BlueCrest Capital Management and Tudor Investment Corp., in addition to Millennium.
UBS O’Connor manages approximately $5.7 billion in assets, while Millennium oversees about $17.8 billion.