Ken Griffin, Founder and CEO, Citadel
Mike Blake | Reuters
Billionaire investor Ken Griffin’s hedge fund impressed the industry with a major outperformance in April, overcoming a brutal market downturn and extreme volatility.
Citadel’s multistrategy flagship fund Wellington rose 7.5% last month, bringing its year-to-date performance to 12.7%, according to a person familiar with the return.
Griffin’s other funds also performed significantly, with tactical trading and global fixed income funds rising 3% each and its equity fund jumping more than 4% in April, the person said.
The outstanding performance came as the overall market suffered a steep sell-off due to concerns about the Federal Reserve’s aggressive tightening, Russia’s invasion of Ukraine as well as rising inflation at a 40-year high. The S&P 500 lost 8.8% in April, the worst month since March 2020 at the start of the Covid pandemic.
Technology stocks were the epicenter of the April sale amid high interest rates and supply chain problems due to Covid-19. The Nasdaq Composite fell about 13.3% in April, its worst monthly performance since October 2008 during the violence of the financial crisis.
All five of Citadel’s core investment strategies – equities, commodities, global interest rates and macro, credit and quantitative strategies – recorded gains last month and are in the green for 2022, the person said.
Investors have sought downside protection in the midst of rising volatility triggered by fears of inflation and rising interest rates as well as geopolitical tensions. The hedge fund industry attracted its biggest gains in seven years during the first quarter.
Citadel’s assets under management exceeded $ 50 billion in early May, the person said.