Ken Griffin, Founder and CEO of Citadel
Mike Blake | Reuters
The volatile September was a once-in-a-lifetime opportunity for billionaire Ken Griffin to shine as his main hedge fund crashed the market with an outperformance.
Citadel’s multi-strategy flagship Wellington fund rose 7.8% in September, bringing it year-to-date performance to 18.5%, according to a person familiar with the returns.
All of the fund’s five investment strategies – stocks, commodities, global bonds, as well as macro, credit and quantitative strategies – posted gains over the past month, the person said.
The entire stock market took a roller coaster ride in September as fears of inflation, slower growth and rising interest rates kept investors nervous. The S&P 500 fell 4.8% last month, seeing its worst month since March 2020, and breaking a seven-month winning streak. The blue-chip Dow and the Nasdaq Composite lost 4.3% and 5.3%, respectively, and had their worst months of the year.
The hedge fund industry has attracted new capital this year as the return of volatility drove investors to alternative investments. Hedge funds saw additional inflows of $ 12 billion in August, bringing total assets under management to a record $ 3.622 trillion, according to data from eVestment.
Citadel’s other multi-strategy fund, Tactical Trading, gained 3.9% in September and is up 14.1% this year.
According to HFR, the hedge fund community grew about 10% in 2021 through the end of August. Citadel’s returns were first reported by Business Insider.
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