Freestone Grove, an equities-focused multimanager hedge fund launched in 2024 by former Citadel executives, has significantly expanded its operations and assets. Since its inception with $3.5 billion in assets and around 90 employees, the firm has more than doubled those figures, currently managing over $6 billion and employing more than 180 staff members as of a March regulatory filing.
This growth positions Freestone Grove as the third-largest hedge fund launch in 2024, surpassing Jain Global, which manages approximately $5.9 billion in assets. Another notable 2024 launch, Taula Capital, manages upwards of $8.5 billion following a recent fundraising round. Freestone Grove is currently preparing to open investment opportunities to select new investors, aiming to further increase its asset base and workforce.
Performance-wise, Freestone Grove generated returns of 11% in its initial year and 8.5% in 2025, though it reported a 3% loss through March 2026. The firm plans to continue expanding its investment teams, aspiring to maintain two to three teams per sector, reflecting a strategy focused on collaboration and concentrated equity trading.
Unlike many contemporary hedge funds adopting the popular multistrategy pod model — where multiple portfolio managers focus on specialized areas — Freestone Grove brands itself as an “anti-pod” operation. It emphasizes fewer managers handling larger pools of capital, with integrated quantitative approaches designed to operate independently of wider market movements. This approach aligns closely with the structure of Citadel’s equities division, from which Freestone Grove’s founders Todd Barker and Daniel Morillo drew inspiration.
The multimanager hedge fund model, prevalent among 2024’s large launches including Jain and Taula, generally faces challenges due to high operating costs. These expenses can significantly impact net returns, placing pressure on funds to sustain strong performance to maintain investor support. Anchor investors often commit capital for extended periods in exchange for reduced fees to mitigate initial costs.
Jain Global, despite its large initial capital, has encountered performance difficulties, leading some investors to redeem their stakes. Meanwhile, Taula Capital started strongly but faced notable losses in early 2026 related to geopolitical events. In contrast, Freestone Grove’s equity-focused strategy, concentrated on a mature asset class with favorable brokerage conditions, has demonstrated relative stability.
Staff retention at Freestone Grove has been strong, with many original leaders and investment personnel still in place. Key roles such as the chief financial officer, head of data science, and head of equity capital markets have seen some turnover, but the continuity among senior investment staff, including six founding sector heads, is seen as positive amid the competitive landscape for talent.
As Freestone Grove continues to grow and refine its teams and strategies, it aims to enhance its position within the hedge fund industry while maintaining its operational model distinct from some of its large peers launched in the same period.
