Griffin’s Citadel hedge fund is up again in 2023 after a record year

Billionaire investor Ken Griffin’s flagship hedge fund matched the broader market’s efficiency at first of 2023 following a file yr, in keeping with an individual accustomed to the returns.

Citadel’s multi-strategy flagship Wellington fund gained 0.7% final month, bringing its 2023 efficiency to 2.8% via February, the particular person stated. The S&P 500 misplaced 2.6% in February, however continues to be up 3.4% this yr via the top of final month.

The inventory market staged a rebound in 2023, led by beaten-down tech shares, as traders guess that the worst of the Federal Reserve’s tightening cycle is over. However some massive identify traders like Greenlight’s David Einhorn consider that shares have extra room to fall.

This yr’s achieve comes after a stellar yr for the hedge fund, which soared 38% in 2022, marking the agency’s greatest yr ever and outperforming its largest competitor, Millennium, by greater than 3 to 1. Citadel has additionally racked up a virtually 117% return over the three-year interval from 2020 to 2022.

Hedge funds intention to supply draw back safety throughout market turmoil, and Citadel managed to shine through the worst chaos out there 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 fee hikes to tame the very 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 lessons, 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 yr, whereas its international fastened earnings fund is larger by 1.6% to this point in 2023, the particular person stated.

Citadel’s property below administration exceeded $54 billion as of the beginning of 2023.