Citadel CEO Ken Griffin on CNBC’s Delivering Alpha on September 28, 2022.
Scott Mill | CNBC
Billionaire Ken Griffin’s flagship hedge fund rose last month as volatility returned amid debate over interest rate cuts, according to a person familiar with returns.
Citadel’s flagship multi-strategy fund Wellington rose 1.9% in January after rising 15.3% last year, according to the person, who spoke anonymously because performance figures are confidential. All five strategies used in the fund – commodities, equities, fixed income, credit and quantitative strategies – were positive for the month, the person said.
The Miami-based firm’s tactical trading fund gained 2.6% this month, while its equity fund, which uses a long/short strategy, returned 2.1%, the person said. Meanwhile, Citadel’s global bond fund returned 1.7%.
Citadel declined to comment.
The stock market had rallied at the start of the year, but momentum has waned recently as interest rate cut hopes faded. Federal Reserve Chairman Jerome Powell said in late January that a rate cut in March was unlikely, triggering the S&P 500’s biggest one-day loss since September. The stock benchmark rose 1.6% in January.
Citadel’s CEO recently spoke positively about the US economy, seeing a soft landing from the Federal Reserve this year. He said the overall economy was looking “pretty good” at the moment, with recent data pointing to a solid labor market, healthy GDP growth and a faster-than-expected moderation in inflation.
The hedge fund giant entered 2024 with $56 billion in assets under management.
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2024-02-05 18:12:19
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