Millennium manager seeks dismissal of $11m Schonfeld suit

Adam Grunfeld, a portfolio manager at Millennium Management, filed papers on Friday in New York State Supreme Court asking the court to dismiss an $11 million claim brought by Schonfeld Strategic Advisors. Schonfeld sued after Grunfeld declined to join the firm, asserting a recruitment agreement signed in March required repayment if he withdrew before starting.

Grunfeld’s filing says the $11 million reflects an anticipated signing payment that was never paid and therefore cannot be reclaimed. His lawyers argue the contract language cannot reasonably be read to impose the same financial obligation on someone who never began employment as on someone who received pay and later left.

Schonfeld’s complaint asserts a clawback provision that would require reimbursement if Grunfeld backed out before joining. The firm contends the amount covers recruitment expenses and the opportunity cost of forgoing other candidates with similar strategies.

Schonfeld also alleges Grunfeld breached confidentiality obligations by using information from the recruitment process to secure improved terms at Millennium. Grunfeld disputes that claim, saying the confidentiality restrictions would apply only to information obtained through employment at Schonfeld, which never began, and that the contract language does not support Schonfeld’s interpretation.

The dispute adds to a recent uptick in legal cases between hedge funds over contested hires, where candidates abandon agreed moves in favour of rival offers. The litigation is captioned Schonfeld Strategic Advisors LLC v Grunfeld and is pending in New York State Supreme Court.

Grunfeld joined Millennium in 2021 after roles at Element Capital Management and earlier positions managing global rates strategies at the investment firm founded by Paul Tudor Jones. His resume also includes stints at Balyasny Asset Management and Comac Capital.