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Bailey McCann, Opalesque New York:

Izzy Englander's Millennium has shut down Prediction Company, a quant fund run by two high profile physicists that has been in operation since the early 1990s, according to a Bloomberg report.

The decision reportedly came as a surprise to staff at the firm.

Prediction Company was led by Doyne Farmer and Norm Packard, the physicists who developed chaos theory.

There has been a significant performance dispersion within the quant category so far this year. In July quantitative funds rebounded after a choppy few months, but investors have been quick to pull money from the cohort when markets get tough.

Prediction was a statistical arbitrage fund that was struggling with performance. The fund was outperforming the category, but it wasn't enough to keep it going. As a category, statistical arbitrage funds are facing their first down year since 2010.

Bloomberg noted that there was some strategy overlap with another Millennium fund - WorldQuant which runs its own statistical arbitrage fund. WorldQuant raised $2.3 billion for it's first fund open to outside investors this year.

News of the decision to close Prediction comes on the heels of some new hires at Millennium. In August, Amir Khandani and Neil Chriss joined the firm. Khandani joins from Morgan Stanley where h......................

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