Ken Griffin, Citadel at CNBC’s Delivering Alpha, Sept. 28, 2022.
Scott Mlyn | CNBC
Billionaire investor Ken Griffin’s numerous hedge fund methods at Citadel all posted double-digit returns for 2023, however they didn’t beat the S&P 500.
Citadel’s multistrategy Wellington fund gained 15.3% final yr, in line with an individual aware of the returns. The flagship fund had loved a stellar 2022 with a 38% acquire, marking its greatest yr on file.
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%, stated the one that spoke anonymously as a result of the efficiency numbers are non-public. Citadel’s world mounted earnings fund returned 10.9% final yr, in line with the particular person.
The inventory market pulled off a surprisingly sturdy 2023 with the S&P 500 climbing 24% on the yr. Threat property loved an enormous reduction rally because the economic system remained resilient and inflation cooled, whereas the Federal Reserve signaled an finish to fee hikes and forecast fee cuts later this yr. The market additionally endured a regional banking disaster in addition to wars in Ukraine and the Center East.
Nonetheless, the volatility and the tough macro atmosphere made it tough for sure hedge fund methods to beat the market. Hedge funds on common gained nearly 4.4% in 2023 by way of November, in line with analysis agency HFR.
Citadel is returning all of 2023’s $7 billion in earnings to traders and the agency has handed again about $25 billion to traders since 2018, the particular person stated. The monetary big has about $58 billion in property underneath administration.
Citadel declined to remark.
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