Since 2008, Millennium Management's assets have fallen from $13 billion to $7 billion. Given the shrinkage, one might attribute the departures of a whole bunch of portfolio managers to a cost-cutting initiative on the fund's part. Such is not the case says people "familiar with" the firm's thinking. Everything is just peachy over there, none of this has anything to do with a shrinking asset base, and if you must know, despite the fact that several of the former employees' exits appear to be voluntary in nature (Matthew Karchmer, for instance, "left last month for a job as a portfolio manager at D.E. Shaw"), Millennium will have you know the so-called cuts were apparently founder Izzy Englander taking a hard line with some bum staffers.
The decision to cut a portfolio manager is based only upon his or her performance, said a person familiar with Englander's thinking. "If you're not performing, you're gone," he said. "You perform, you stay."