Billionaire investor Ken Griffin’s hedge fund wowed the business with huge outperformance in April, overcoming a brutal market rout and excessive volatility.
Citadel’s multistrategy flagship fund Wellington rallied 7.5% final month, bringing its year-to-date efficiency to 12.7%, in accordance to an individual conversant in the returns.
Griffin’s different funds additionally outperformed considerably, with tactical buying and selling and international mounted earnings funds up 3% every and its fairness fund leaping greater than 4% in April, the individual stated.
The standout efficiency got here as the general market suffered a steep sell-off on issues concerning the Federal Reserve’s aggressive tightening, Russia’s invasion of Ukraine in addition to surging inflation at a 40-year-high. The S&P 500 misplaced 8.8% in April, its worst month since March 2020 on the onset of the Covid pandemic.
Know-how shares had been the epicenter of the April sell-off amid excessive rates of interest and provide chain points stemming from Covid-19. The Nasdaq Composite fell about 13.3% in April, its worst month-to-month efficiency since October 2008 in the throes of the monetary disaster.
All 5 core funding methods at Citadel — equities, commodities, international mounted earnings and macro, credit score, and quantitative methods — registered positive aspects final month and are in the inexperienced for 2022, the individual stated.
Traders have been searching for draw back safety amidst the volatility spike triggered by fears of inflation and rising charges in addition to geopolitical tensions. The hedge fund business attracted its largest inflows in seven years in the course of the first quarter.
Citadel’s asset below administration exceeded $50 billion as of the beginning of Could, the individual stated.