Millennium Management to Back Sone Capital in Major Hedge Fund Launch

Millennium Management is poised to back Sone Capital Management, a new systematic market-neutral hedge fund founded by George Panos, a former portfolio manager at Echo Street Capital. This investment is part of Millennium’s strategy to allocate more capital to external traders, according to a Bloomberg report.

Sources familiar with the situation have revealed that Sone Capital is set to launch next month with an initial capital of over $500 million, largely funded by Millennium’s Izzy Englander. The specific details of the deal, however, remain under wraps.

Sone Capital will join a growing list of hedge funds, such as Delta Global Management, Taula Capital Management, and Kedalion Capital Management, which have all secured substantial backing from Millennium. Panos will manage Millennium’s capital through a separately managed account, while also handling investments for additional clients.

Both Millennium and Sone Capital have declined to comment on the partnership.

Millennium, with more than 330 trading teams, is known for its active support of external hedge funds, which make up roughly 10% of the firm’s trading activities. Many of these funds manage capital exclusively for Millennium, as reported by Bloomberg.

Earlier this year, Millennium committed billions of dollars to Aaron Weiner of Coatue Management, who is leaving the firm to establish his own hedge fund.

Panos previously managed capital at Echo Street Capital, which oversaw approximately $11 billion in assets before opting to return external funds. Greg Poole, Echo Street’s founder, has shown support for Panos’ new venture and has indicated plans to invest in Sone Capital.

This move reflects Millennium’s growing emphasis on diversifying its hedge fund portfolio by supporting talented external managers. With Sone Capital’s strategy and Panos’ prior experience, it is expected to attract further attention in the competitive hedge fund industry.