Townie Wells, head of fundamental equities at Jain Global, has left the multistrategy investment firm to launch his own long/short equity hedge fund and is in discussions with Millennium Management over a potential multibillion-dollar capital allocation, according to a report by Bloomberg.

The New York-based portfolio manager departed last week and plans to raise additional capital from external investors alongside a potential commitment from Millennium. Wells, a former Citadel trader, was among Jain Global's most successful portfolio managers in 2025, when the firm generated approximately $750m in trading profits.

His departure follows a challenging period for Jain Global's equities business, with founder Bobby Jain stepping in to help oversee the strategy during the second quarter of 2026. The firm subsequently returned all external investor capital and transitioned to managing money exclusively for Millennium at the beginning of September.

Wells had previously explored launching an independent hedge fund three years ago, when he also held discussions with Millennium over a potential multibillion-dollar allocation. His latest plans reflect the growing role of separately managed accounts (SMAs) in financing new hedge fund launches.

According to Goldman Sachs research, approximately half of hedge funds launched in 2025 received initial backing through SMAs, compared with 16% a decade earlier. Among launches using these arrangements, managed account allocations represented an average of 84% of initial assets.

The move comes amid a wave of high-profile portfolio managers establishing independent firms with substantial institutional backing. Former Sequoia Capital investor Jeff Wang recently launched a technology-focused hedge fund with more than $1bn, while former Coatue Management trader Daniel Senft raised $2.5bn for NX1 Capital in January.

Despite these launches, fundraising conditions remain challenging. Data from Hedge Fund Research shows approximately 3,200 hedge funds have launched since 2020, while more than 3,100 have closed over the same period.