>Millennium Management lost about $900 million so far this year from two teams focused on index rebalancing, a strategy recently upended by global stock market volatility, according to people familiar with the matter.
>Glen Scheinberg runs the larger of the two index-rebalancing teams, a group known as SRBL, while Dubai-based Pratik Madhvani manages the other crew focused on the strategy, the people said. A representative for Millennium declined to comment.
>Index rebalancing — often highly leveraged — involves betting on which companies enter or exit various stock indexes, and it can be lucrative for giant multimanager hedge funds like Millennium.
>Yet bouts of market unrest combined with the crowded nature of the trades can also trigger significant losses — even if portfolio managers bet on the right stocks.
>Hong Kong-based senior portfolio manager Jeremy Ma, who also specialized in index-rebalancing trades, has left Millennium, according to a person with knowledge of the matter. Ma didn’t reply to a social-media message seeking comment.
>Index rebalancing has soured returns before, including in 2022.
>One fund manager estimated that just a dozen firms deployed the trade in 1998. That number ballooned to at least 50 firms in more recent years — including various pods at the big multimanagers — before deteriorating returns drove some traders away.
>The upside can be significant, though. Scheinberg and Madhvani’s groups were both profitable last year.
>Millennium, which manages about $75 billion, was down less than 1% this year through February, even with the losses.
Link: [https://www.bloomberg.com/news/articles/2025-03-08/millennium-loses-900-million-on-strategy-roiled-by-market-chaos](https://www.bloomberg.com/news/articles/2025-03-08/millennium-loses-900-million-on-strategy-roiled-by-market-chaos)
