- Ken Griffin’s hedge fund, Citadel, continues to shine after a stellar performance in 2022.
- Wellington, the powerhouse multi-strategy fund, is up 2.8% through February this year.
- The rise mirrors the rally in U.S. equities so far this year, with the S&P 500 gaining 3.8% from early 2023 through February.
Billionaire Ken Griffin’s hedge fund Citadel A good start to this year After enjoying record profits in 2022.
Wellington, the powerhouse’s multi-strategy flagship fund, rose 0.7% last month, giving it a year-to-date performance of 2.8% through February. The S&P 500 has seen him gain more than 3% over the same period, reflecting the stock’s rally this year.
Meanwhile, Citadel’s equity funds are up 2.4% and global bond funds are up 1.6% in 2023.
The encouraging numbers build on Citadel’s record performance last year, which brought in investors a record $16 billion in profits in 2022, the largest ever.
Citadel’s record-breaking earnings surpassed seven-year winner Ray Dalio’s Bridgewater on LCH’s 2022 Top Hedge Fund Managers list. It also surpassed investor John Paulson’s 2007 earnings of about $15.6 billion and was classified as the “greatest deal of all time” at the time. , According to Bloomberg.
This was despite a tough year for the investment industry, thanks to aggressive Fed tightening policy and geopolitical tensions weighing on the market. The Federal Reserve’s jumbo rate hike has sent the value of both stocks and bonds down. In other words, hedge funds betting on falling prices suffered losses.
This year, however, US stocks have rebounded as investors expect the Fed to slow its pace of rate hikes as inflation falls. The Nasdaq is up about 12% so far this year, and the Dow Jones is up about 0.76%.