Modular Asset Management, a macro hedge fund firm based in Singapore, will reportedly cease managing funds for Millennium Management at the end of the year.

This decision comes after more than eight years of collaboration and is by mutual agreement, reported Bloomberg, citing sources familiar with the matter.

Modular has managed approximately $600m for Millennium in a separate account.

The termination of this deal allows Modular to diversify its investor base, reducing its dependency on a single large investor, which previously accounted for one-third of its assets.

Modular’s founder, Jimmy Lim, and a spokesperson from Millennium both declined to comment on the development, reported the publication.

Modular spun out from Millennium in early 2020, with Lim having worked at Millennium for about two and a half years prior to this transition.

Since then, Modular has rebuilt its capital base with investments from multiple sources, now overseeing nearly $1.6bn in assets, just $100m less than four months ago.

Macro hedge funds, which invest across equity, fixed-income, currency, and commodity markets, often experience volatile returns.

However, Modular has consistently performed well, avoiding any losing years since its inception in January 2020. As of August, it had positive returns in 81% of the months, with a maximum loss of just under 2.7%.

Modular’s hedge fund has reportedly returned almost 6% this year through August. Meanwhile, Millennium’s assets have doubled since the end of 2019, reaching $79bn.

In Asia, Millennium has allocated substantial funds to new ventures, such as $1.5bn to Robert Tau’s Aeonea, $1.2bn to Thomas Wong’s Optimas Capital Management, and about $1bn to Qin Xiao’s upcoming commodities trading startup.

In recent years, geopolitical tensions have made it challenging for global firms to find seasoned investors in Asia’s macro trades.

Millennium has seen notable returns with Ayan Sen, founder of Navik Capital, rejoining the firm, and the hiring of Jai Rajpal, whose Crescent Asset Management previously managed funds for Millennium.