Millennium Adds Morgan Stanley's Santoro for Equities

  • He replaces Hyung Soon Lee, who left last year after shake-up
  • Englander’s hedge fund had second-worst performance last year

Millennium Management, Israel Englander’s $34.4 billion hedge fund, lured Morgan Stanley’s global head of equities trading, Peter Santoro, to fill a similar role at the firm, according to people with knowledge of the move.

Santoro, who took the top equities-trading job at New York-based Morgan Stanley in January 2016, replaces Hyung Soon Lee, said the people, who asked not to be identified discussing personnel moves. Santoro didn’t reply to messages seeking comment.

Lee left last year amid a restructuring of the hedge fund’s equities group, which oversees the most money at the firm. While assets have more than doubled in the past five years, Millennium posted its second-worst performance last year since starting in 1989. The hedge fund also is looking to replace Michael Gelband, its global fixed-income chief who was once seen as a potential successor to Englander until he quit last month.

Santoro ran equity trading for the Americas before his promotion to global head last year amid a management shake-up in the trading division. He joined Morgan Stanley in 2010 from Citadel Investment Group and has had leadership roles at Citigroup Inc. among other firms. Morgan Stanley is Wall Street’s top equities-trading firm by revenue, reaping $8.04 billion last year.

Alan Thomas

Ted Pick, the global head of trading who had promoted Santoro last year, on Tuesday named Morgan Stanley veteran Alan Thomas to run equities for the Americas, giving him the bulk of Santoro’s responsibilities. Thomas, who joined Morgan Stanley in 1995 after graduating from the Massachusetts Institute of Technology, had been prime brokerage co-head since 2009. More recently, he took control of financing businesses and has helped optimize trading desks’ use of capital, Pick said in a memo.

Following Santoro’s departure, the firm’s equities leadership will move to a regional structure, with Thomas overseeing trading and sales in the Americas and David Russell holding a similar role in Europe.

Separately, the firm’s chief U.S. equity strategist Adam Parker is joining a hedge fund client, Eminence Capital, as director of quantitative strategy. Mike Wilson, chief investment officer of wealth management since 2012, will take on Parker’s responsibilities and also become CIO for the institutional securities business, according to a memo to staff. Reuters reported the moves earlier Wednesday.

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