Ken Griffin, Citadel at CNBC’s Delivering Alpha, Sept. 28, 2022.
Scott Mlyn | CNBC
Billionaire investor Ken Griffin’s varied hedge fund methods all posted double-digit returns for 2023, however they did not beat the broader market.
Citadel’s multistrategy Wellington fund gained 15.3% final 12 months, in keeping with an individual accustomed to the returns. The flagship fund had loved a stellar 2022 with a 38% acquire, marking its finest 12 months on report.
The Miami-based agency’s tactical buying and selling fund gained 14.8% in 2023, whereas its equities fund, which makes use of an extended/brief technique, returned 11.6%, the individual mentioned. Citadel’s international fastened earnings was a relative underperformer on the agency, returning 10.9% final 12 months, in keeping with the individual.
The inventory market pulled off a surprisingly sturdy 2023 with the S&P 500 climbing 24% on the 12 months. Danger property loved an enormous aid rally because the financial system remained resilient and inflation cooled, whereas the Federal Reserve signaled an finish to fee hikes and forecasted fee cuts later this 12 months. The market additionally endured a regional banking disaster in addition to wars in Ukraine and the Center East.
Nevertheless, the volatility and the difficult macroenvironment made it tough for sure hedge fund methods to beat the market. Hedge funds on common gained nearly 4.4% in 2023 via November, in keeping with analysis agency HFR.
Citadel is returning all of 2023’s $7 billion in income to traders and the agency has handed again about $25 billion to traders since 2018, the individual mentioned. The monetary big has about $58 billion in property below administration.
Citadel declined to remark.
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