ExodusPoint Capital Management, LP is a hedge fund based out of New York City with billions in assets under management (AUM). The firm has a few hundred advisory employees.
Unlike a traditional investment advisory, ExodusPoint Capital Management does not advise clients and manage their money. Rather, their "client" base is comprised of pooled investment funds - the funds that it manages, which select investors can buy into. If you’re an individual looking for investment management or financial planning services, try our advisor matching tool to find options that serve your area.
ExodusPoint Capital Management Background
Despite its large asset pool, ExodusPoint Capital Management is a relative newcomer, having been established in 2017. The firm was co-founded by CEO and head of fixed-income Michael Gelband and head of equities Hyung Soon Lee. The duo has more than 50 years of combined experience in the financial sphere, as they’ve previously worked together at Lehman Brothers and Millennium Management, LLC.
The professional financial designations represented on ExodusPoint’s staff include chartered financial analysts (CFA) and certified public accountants (CPA).
ExodusPoint Capital Management Client Types and Minimum Account Sizes
In total, ExodusPoint is responsible for the management of six pooled investment funds. There are a number of different clients that invest in these funds, such as high-net-worth individuals, accredited investors, family offices, endowments, foundations, trusts, charitable organizations, pension plans, sovereign wealth funds and businesses.
In order to invest in any of ExodusPoint Capital Management’s funds, the firm requires you to have at least $5 million in investable assets.
Services Offered by ExodusPoint Capital Management
The discretionary management of private investment funds is the main focus at ExodusPoint Capital Management. The firm handles the asset allocation and risk management for each of its funds and the strategies used within them.
ExodusPoint Capital Management Investment Philosophy
At its core, ExodusPoint’s investment ideology looks to “consistently generate attractive, risk-adjusted returns in all market environments and preserve investor capital,” according to its Form ADV. For the most part, the firm’s investments fall somewhere within the equity and fixed-income sectors. Diversification across domestic and global markets is a major consideration as well.
Exposure to the aforementioned equity and fixed-income sectors can be done through many different types of securities at ExodusPoint. This list could include preferred stocks, warrants, commodities, credit-related instruments, exchange-traded funds (ETFs), exchange-traded notes (ETNs), master limited partnerships (MLPs), real estate investment trusts (REITs) and more.
Fees Under ExodusPoint Capital Management
Because ExodusPoint Capital Management is a hedge fund, the funds it manages do not pay any fees. Instead, those who invest in the funds must pay a prorated fee depending on the size of their ownership share. These charges can include transactional, organizational, operating and offering expenses, among others.
What to Watch Out For
ExodusPoint Capital Management’s fee schedule includes performance-based fees. This means that the firm can earn extra compensation for surpassing predetermined performance benchmarks. Note, though, that the firm states in its Form ADV that this arrangement “may create an incentive for ExodusPoint to make investments that are riskier or more speculative than would be the case if the (firm) were compensated solely based on a flat percentage of assets under management.”
Despite the potential receipt of performance-based fees, ExodusPoint Capital Management abides by fiduciary duty. This legally requires the firm and its employees to act in the best interest of clients.
There are no disclosures listed on ExodusPoint Capital Management’s SEC-filed Form ADV.
Opening an Account With ExodusPoint Capital Management
Interested in investing with ExodusPoint Capital Management? If so, try calling the firm at (646) 940-9600 or visiting the firm's website contact page. Once you become a client, you’ll gain access to the firm’s investor portal.
All information is accurate as of the writing of this article.
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