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, but they did not beat the broader market.
Citadel’s multistrategy Wellington fund gained 15.3% final 12 months, in response to an individual conversant in the returns. The flagship fund had loved a stellar 2022 with a 38% achieve, marking its finest 12 months 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%, the particular person mentioned. Citadel’s international mounted earnings was a relative underperformer at the agency, returning 10.9% final 12 months, in response to the particular person.
The inventory market pulled off a surprisingly robust 2023 with the S&P 500 climbing 24% on the 12 months. Risk belongings loved an enormous reduction rally as the economic system remained resilient and inflation cooled, whereas the Federal Reserve signaled an finish to charge hikes and forecasted charge cuts later this 12 months. The market additionally endured a regional banking disaster in addition to wars in Ukraine and the Middle East.
However, the volatility and the tough macroenvironment made it troublesome for sure hedge fund methods to beat the market. Hedge funds on common gained nearly 4.4% in 2023 by means of November, in response to 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 mentioned. The monetary big has about $58 billion in belongings beneath administration.
Citadel declined to remark.
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