Ken Griffin, the founder and CEO of Citadel, in 2014.
E. Jason Wambsgans | Tribune Information Service | Getty Pictures
Billionaire investor Ken Griffin’s flagship hedge fund matched the broader market’s efficiency to start with of 2023 following a file 12 months, in keeping with an individual acquainted with the returns.
Citadel’s multi-strategy flagship Wellington fund gained 0.7% final month, bringing its 2023 efficiency to 2.8% by February, the individual stated. The S&P 500 misplaced 2.6% in February, however continues to be up 3.4% this 12 months by the top of final month.
The inventory market staged a rebound in 2023, led by beaten-down tech shares, as buyers guess that the worst of the Federal Reserve’s tightening cycle is over. However some massive identify buyers like Greenlight’s David Einhorn consider that shares have extra room to fall.
This 12 months’s acquire comes after a stellar 12 months for the hedge fund, which soared 38% in 2022, marking the agency’s finest 12 months ever and outperforming its largest competitor, Millennium, by greater than 3 to 1. Citadel has additionally racked up an almost 117% return over the three-year interval from 2020 to 2022.
Hedge funds goal to supply draw back safety throughout market turmoil, and Citadel managed to shine throughout the worst chaos available in the market in years. The S&P 500 tumbled right into a bear market in 2022 as recession fears intensified on the again of the Fed’s aggressive charge hikes to tame the best inflation in 40 years.
Macro hedge funds, these making bets round political or financial occasions, have fared significantly properly as tighter financial coverage from international central banks stoked wild strikes in numerous asset courses, from bonds to shares, and commodities to currencies.
Citadel’s equities fund, which makes use of an extended/brief technique, is up 2.4% this 12 months, whereas its international mounted earnings fund is increased by 1.6% thus far in 2023, the individual stated.
Citadel’s property beneath administration exceeded $54 billion as of the beginning of 2023.
