The Millennium Management faces a loss of $ 900 million amid market fluctuations – what investors should know

Millennium Management LLC According to what was reported, he suffered a loss of about 900 million dollars this year. The loss is due to the continuous volatility in the global securities market, which negatively affected its strategy in rebalancing the index.

What happened: The losses were driven by two teams inside the millennium, both of which focused on re -balance of the index. The biggest team, known as SRBL Glen ChenbergThe other team works under the leadership of Prahatk Madhvani, based in Dubai.

The re -balance of the index is a strategy that includes betting on companies that enter or graduate from various stock indexes.

While this approach can make great profits for multiple large hedge boxes such as the millennium, it can also lead to great losses, especially in times of market instability and its gained.

JeremyAnd he is a large wallet manager based in Hong Kong, a specialist in index deals, and according to what was reported, he cut roads with the millennium, Reports Bloomberg.

Despite the losses, the company, which runs about 75 billion dollars, decreased less than 1 % this year until February.

Why do it matter: Ribarancing the index has a history in generating disappointing revenues, as was the case in 2022. Over the years, the number of companies that implement this strategy has grown.

However, the deteriorating returns have pushed some merchants to give up this approach.

The recent losses incurred by the Millennium Management highlight the risks associated with the balance of the index, especially during the periods of market fluctuations.