Millennium Management is set to support Sone Capital Management, former Echo Street Capital portfolio manager George Panos's new systematic market-neutral hedge fund firm, as part of a strategy to allocate more capital to external traders, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as confirming that Sone Capital is expected to begin trading next month with initial capital exceeding $500m, largely provided by Izzy Englander's firm, though the details remain confidential.

Sone Capital will join other hedge funds like Delta Global Management, Taula Capital Management, and Kedalion Capital Management, all of which have secured significant funding from Millennium. Panos will manage Millennium’s capital through a separately managed account, while also handling investments for other clients.

Both Millennium and Sone Capital declined to comment on the deal.

Millennium, which oversees more than 330 trading teams, is one of the most active supporters of external hedge funds, which constitute about 10% of the firm's trading operations, with many managing money exclusively for the firm, according to previous reports by Bloomberg.

Earlier this year, Millennium also allocated billions of dollars to Aaron Weiner of Coatue Management, who is leaving the firm to establish his own hedge fund.

Panos previously managed capital for Echo Street Capital, which had about $11 billion in assets before deciding to return external funds. Echo Street’s founder, Greg Poole, has expressed support for Panos’ new venture, indicating that he would invest in Sone Capital.