Top job: Griffin speaking at a forum in Singapore. The firm’s performance is an outlier among its multi-strategy peers, many of which have posted single-digit returns this year. — Bloomberg
NEW YORK: Ken Griffin’s Citadel plans to return about US$7bil to clients after double-digit gains in its multi-strategy hedge funds over the past two years bumped assets to US$63bil.
The firm’s flagship Wellington fund gained about 15% through November, according to a person familiar with the matter, after a 38% gain in 2022. The Wall Street Journal reported Citadel’s plans earlier.
Hedge fund managers sometimes give capital back to investors to keep their funds from growing too large to make profitable investments in certain asset classes.
Citadel, a Miami-based company, routinely returns profits to clients. A spokesperson for the firm declined to comment.
Citadel and other multi-manager hedge funds have experienced explosive growth over the past few years as investors sought the relative stability and steady returns these strategies aim to offer.
Such firms divvy up money across dozens or even hundreds of teams that operate somewhat independently across a range of markets and strategies.
Citadel’s performance is an outlier among its multi-strategy peers, many of which have posted single-digit returns this year.
The firm is returning the capital during December and January and expects to start next year with US$58bil in assets. — Bloomberg
