Ken Griffin’s Citadel plans to return about $7 billion to shoppers after double-digit beneficial properties in its multistrategy hedge funds over the previous two years bumped belongings to $63 billion.
The agency’s flagship Wellington fund gained about 15% by means of November, in line with an individual accustomed to the matter, after a 38% achieve in 2022. The Wall Avenue Journal reported Citadel’s plans earlier.
Hedge fund managers generally give capital again to traders to maintain their funds from rising too giant to make worthwhile investments in sure asset courses. Miami-based Citadel routinely returns earnings to shoppers.
A spokesperson for the agency declined to remark.
Citadel and different multimanager hedge funds have skilled explosive progress over the previous few years as traders sought the relative stability and regular returns these methods purpose to supply. Such companies divvy up cash throughout dozens and even tons of of groups that function considerably independently throughout a variety of markets and techniques.
Citadel’s efficiency is an outlier amongst its multistrategy friends, lots of which have posted single-digit returns this yr.
The agency is returning the capital throughout December and January and expects to begin subsequent yr with $58 billion of belongings.
