Citadel’s Flagship Hedge Fund Rebounds 7% in April, Brings 2022 Returns to Nearly 13%

Ken Griffin, Founder and CEO, Citadel

Mike Blake | Reuters

Billionaire investor Ken Griffin’s hedge fund won the industry over with a strong outperformance in April, overcoming a brutal market rout and extreme volatility.

Citadel’s flagship multi-strategy fund, Wellington, rebounded 7.5% last month, taking its year-to-date performance to 12.7%, according to a person familiar with the returns.

Griffin’s other funds also outperformed significantly, with tactical trading funds and global fixed income funds up 3% each and its equity fund jumping more than 4% in April, the person said. .

The stellar performance came as the overall market suffered a sharp sell-off on concerns over the Federal Reserve’s aggressive tightening, Russia’s invasion of Ukraine as well as inflation surging to record highs. level in 40 years. The S&P 500 lost 8.8% in April, its worst month since March 2020 at the start of the Covid pandemic.

Tech stocks were the epicenter of April’s selloff amid high interest rates and supply chain issues stemming from Covid-19. The Nasdaq Composite fell about 13.3% in April, its worst monthly performance since October 2008 in the midst of the financial crisis.

Citadel’s five core investment strategies — equities, commodities, global fixed income, and macro, credit and quantitative strategies — posted gains last month and are in the green for 2022, the person said.

Investors sought downside protection from the spike in volatility triggered by inflation and rate hike fears as well as geopolitical tensions. The hedge fund industry attracted its largest inflows in seven years during the first quarter.

Citadel’s assets under management exceeded $50 billion in early May, the person said.

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