Yiming Zhang to launch external fund with Millennium backing

Yiming Zhang, a senior quant researcher who left Jump Trading after 17 years, will receive launch capital from hedge‑fund giant Millennium Management once his two‑year non‑compete expires, positioning Millennium to deepen its external‑manager program【1】.

Departure from Jump Trading

Zhang’s resignation, announced last week, follows the exit of fellow senior researcher Darko Kirovski, both credited with driving growth in Jump’s Core Strategies unit, one of the firm’s most profitable systematic trading arms【1】. Jump’s co‑founder Paul Gurinas praised their contributions, noting they will remain “friends of the firm forever.” The firm’s strict non‑compete clauses can bar departing staff from competing or launching new ventures for as long as two years, even for non‑executives【1】.

Millennium’s external‑manager push

Millennium Management, which oversees $84 billion in assets, has increasingly allocated capital to seasoned external managers, often via separately managed accounts, to augment its multi‑manager platform【1】. Sources say Zhang will join Millennium as an exclusive external manager once his non‑compete period concludes, receiving dedicated launch capital to run his own strategy【5】. Millennium declined to comment, and Zhang has not responded to requests for comment.

Market context

Jump Trading’s systematic units, particularly Core Strategies, have been central to its profitability, making Zhang’s departure a notable talent loss for the firm. For Millennium, the move underscores a broader trend of large hedge funds seeding external talent to diversify strategy exposure without expanding internal teams. This aligns with Millennium’s recent emphasis on external manager seeding, a practice that has grown alongside its $84 bn asset base【5】.

What to watch

• Non‑compete expiry – The exact date when Zhang’s two‑year restriction ends will determine when he can begin managing capital for Millennium.
• Capital allocation – Details of the launch capital size and performance targets may be disclosed in future filings or press releases.
• Jump Trading’s staffing – Further departures or hires within Jump’s Core Strategies could signal additional shifts in its systematic trading capacity.

Zhang’s transition highlights the growing importance of external talent in the hedge‑fund ecosystem, while also raising questions about how Jump Trading will sustain its systematic edge without two of its longest‑serving researchers.