Hedge fund Citadel expects to return $7 bln in profits to clients - source (updated)

Citadel Income Fund

21/12/2022 17:44

(Updates with source, details on strategy)
    By Carolina Mandl
       Dec 21 (Reuters) - Hedge fund Citadel expects to return
about $7 billion in profits to its investors in the first week
of January after a stellar performance this year, a source
familiar with the matter said. 
    Reuters reported this month that this year was shaping up to
be one of Citadel's best years in terms of performance. The
hedge fund firm, which manages $59 billion in assets, told
investors its flagship Wellington fund returned roughly 32%
through the end of November.
    Citadel, founded by billionaire investor Ken Griffin, did
not immediately respond to a Reuters request for comment.
    This is not the first time Citadel has returned money to its
investors, but this will be the largest amount of profit
returned in a single year. It has returned more than $11 billion
in the last five years as it is more focused on performance, not
on capital growth, the source said. 
    While fears of interest rate hikes and the Russia-Ukraine
war weighed on capital markets throughout 2022, leaving the
benchmark S&P 500  .SPX  down about 20%, hedge funds have
weathered the downturn better on average. Still, they are down
4.11%, according to data provider HFR.
 (Reporting by Carolina Mandl, in New York. Additional reporting
by Manya Saini in Bengaluru; Editing by Shailesh Kuber and Josie
Kao)
 ((Manya.Saini@thomsonreuters.com;))