Hedge fund Citadel expects to return $7 billion in profits to clients
Hedge fund Citadel expects to return about $7 billion in profits to its investors in the first week of January after a stellar performance this year, a source familiar with the matter said. ... |…
Reuters reported this month that this year was shaping up to be one of Citadel's best years in terms of performance. The hedge fund firm, which manages $59 billion in assets, told investors its flagship Wellington fund returned roughly 32% through the end of November. Citadel, founded by billionaire investor Ken Griffin, did not immediately respond to a Reuters request for comment.
This is not the first time Citadel has returned money to its investors, but this will be the largest amount of profit returned in a single year. It has returned more than $11 billion in the last five years as it is more focused on performance, not on capital growth, the source said. While fears of interest rate hikes and the Russia-Ukraine war weighed on capital markets throughout 2022, leaving the benchmark S&P 500 down about 20%, hedge funds have weathered the downturn better on average.
Still, they are down 4.11%, according to data provider HFR. (Reporting by Carolina Mandl, in New York. Additional reporting by Manya Saini in Bengaluru; Editing by Shailesh Kuber and Josie Kao) By Carolina Mandl