Citadel, the hedge fund helmed by Ken Griffin, will return $7 billion in profits to its clients, reports an article in Bloomberg. The firm’s assets have risen to $63 billion over the last two years, mainly through gains across its multi-strategy funds, and Wellington, their flagship fund, has gained 14% so far this year, after shooting up 38% last year.
A spokesperson for Citadel declined to comment, but Bloomberg reports that the firm regularly gives profits back to their clients, in order to prevent their funds from becoming too big to earn profits in some asset classes. Over the past few years, investors have poured enormous amounts of capital into multi-manager hedge funds, seeking a steady income that the strategies offer—a welcome stability in a turbulent market. Multi-manager funds spread the money across a broad spectrum of teams that function relatively independently in various markets and employ a range of strategies. But while many of these types of firms have seen huge growth in the last few years, their gains have been in the single-digits while Citadel’s has been far above that, the article details.
The capital will be returned to clients throughout December and January, and the firm will be starting 2024 off with roughly $58 billion in assets, Bloomberg reports.