(Bloomberg) -- ExodusPoint Capital Management is expanding its bonus clawbacks to senior non-investment staff, a sign that the hedge fund industry’s talent war has moved beyond top portfolio managers.
The policy means employees will have to pay back as much as 40% of their 2024 bonus if they quit before the end of next year, according to people familiar with the matter, who asked not to be identified discussing confidential matters.
Employees were notified recently about the change, about a month before the firm will start distributing the payouts. ExodusPoint already had the policy for investment staff.
A representative for the New York-based firm declined to comment.
Multistrategy funds have been battling for talent for several years, spurring many to spend tens of millions of dollars to lure top traders. Eisler Capital also introduced a rule earlier this year requiring traders to potentially repay their 2023 bonuses if they depart before year end.
ExodusPoint debuted in 2018 with $8 billion, making it the largest-ever hedge fund launch. But the firm’s performance has trailed many of its rivals since then. It’s up just 8.6% this year through November, while competitors such Millennium Management, Citadel and Balyasny Asset Management notched double-digit gains.
In September, ExodusPoint offered to waive performance fees if returns lagged behind three-month Treasuries for a year, as long as clients agreed to lock up their cash for longer.
ExodusPoint, founded by Millennium alumni Michael Gelband and Hyung Lee, manages about $11 billion of assets. It has more than 600 employees across eight cities worldwide.
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