(HedgeCo.Net). While many large hedge funds are profiting in 2025, Millennium Management — with roughly $79 billion in assets under management — suffered significant losses in November, particularly in one of its favorite strategies: index-rebalancing. Wikipedia+1

Teams led by top portfolio managers reportedly lost “hundreds of millions” as volatility around recent index reconstitutions (especially tied to AI-related stocks) upended expectations. Business Insider

Though the fund remained modestly positive overall for the month, its performance trailed that of competitors such as Citadel, Point72 Asset Management, and Balyasny Asset Management. Business Insider+1

The setbacks at Millennium underscore that even top-tier hedge funds remain vulnerable to the structural shocks and unpredictable swings in today’s markets.

The hedge-fund industry continues to evolve rapidly: firms are increasing leverage, shifting allocations away from crowded tech names, experimenting with AI-augmented workflows, and — at times — suffering big tactical losses.