The Blubber

Ken Griffin’s Citadel posted a 15.3% return in its main Wellington hedge fund last year, per Bloomberg.

Billionaire investor Ken Griffin's diverse hedge fund strategies within Citadel all achieved double-digit returns in 2023, although they fell short of outperforming the S&P 500. The multistrategy Wellington fund, Citadel's flagship, secured a 15.3% gain for the year, a noteworthy result but a notable decline from its outstanding 38% gain in 2022, marking its most prosperous year on record. Other strategies at the Miami-based firm included a 14.8% gain for the tactical trading fund, an 11.6% return for the equities fund utilizing a long/short approach, and a 10.9% return for the global fixed income fund. Despite the positive returns, the broader market, as measured by the S&P 500, outpaced these hedge fund strategies, posting a 24% climb in 2023. The market's resilience amid volatility, coupled with a favorable macroeconomic environment, posed challenges for certain hedge fund approaches.

On average, hedge funds reported a modest gain of about 4.4% in 2023 through November, according to research firm HFR. Citadel has decided to distribute all of its $7 billion in profits from 2023 back to investors, continuing a trend as the firm has returned around $25 billion to investors since 2018. With approximately $58 billion in assets under management, Citadel remains a significant player in the financial landscape. The firm opted not to provide comments on its performance.