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Izzy Englander's Millennium Management has more money than ever—$86.3 billion to be exact—but not nearly enough people to invest it.
For years, Millennium has tried to solve its talent shortage with flexibility. Some portfolio managers can live in tax-friendly locations like Puerto Rico or Dubai. Others can run their own firms while still managing Millennium's money. The firm has poached top talent from competitors with eye-popping pay packages and even expanded into new asset classes such as commodities and private credit.
But despite these efforts, Millennium’s cash pile has grown by more than $30 billion since 2022. Hiring 160 new portfolio managers in 2024 and outsourcing billions to outside funds hasn’t kept pace with the firm’s expanding capital.
Now, Millennium is taking a more traditional approach: building a talent pipeline from the ground up. Starting in 2027, the firm will launch an internship program for graduating college seniors. Participants will get hands-on experience working with senior portfolio managers, and the top performers will have a chance to become full-time analysts.
Millennium isn’t alone. The largest multistrategy hedge funds—including Citadel, Point72, and Balyasny—are professionalizing their talent programs. From internships to entry-level training programs, to analyst roles, and eventually coveted portfolio manager (PM) seats, these firms are creating clear career paths.
“You can’t only hire from the outside. You need to develop even more talent internally now,” said Gerald Beeson, Citadel’s COO, reflecting a sentiment widely shared in the industry.
The shift has been driven by necessity. Bank trading desks have shrunk since the 2008 financial crisis, while multistrategy funds have grown their assets dramatically. With more capital to deploy, firms need more trained professionals—and the talent competition has turned fierce. Last year, Millennium even lured a top stock-picker from Balyasny with a package that could reach $100 million.
The pressure to hire and retain talent has forced hedge funds to rethink how they cultivate their teams. Citadel’s internship programs, for example, received over 108,000 applications last year but hired just 0.6%. To improve hiring outcomes, the firm has created a dedicated talent and recruitment center and brought on a former McKinsey executive to build data-driven assessment tools.
Other funds have taken creative approaches. Point72 produces “baseball cards” for its analysts to track strengths and growth opportunities. Balyasny uses personality tests to match junior hires with PMs and pairs new PMs with executive coaches. These efforts aim to ensure talent develops in a structured yet personalized way.
The result: portfolio managers are increasingly taking on a mentorship role, guiding analysts and shaping the next generation of investors. As Ilan Weiss, a Balyasny PM, puts it, “You’re Steph Curry, and you’re Steve Kerr,” simultaneously excelling at your craft while coaching others.
Some worry that professionalizing hedge fund careers could dilute the edge that made these firms successful—creative, independent thinking from maverick investors. But leaders insist that early-career training provides a toolkit rather than a formula. Creativity remains highly prized.
“There’s no way of teaching them how to model that makes them the same. Creativity can be pretty idiosyncratic,” says Jaimi Goodfriend of Point72.
Ultimately, the goal is retention. Many young professionals today are looking for a career, not just a job. By investing in early-career talent, multistrategy funds aim to cultivate loyalty and ensure that the people managing billions of dollars aren’t just passing through.
For firms like Millennium, Citadel, and Balyasny, the stakes are high. Building the next generation of star investors isn’t just a nice-to-have—it’s essential for managing unprecedented amounts of capital and maintaining an edge in an increasingly competitive landscape.