Ken Griffin, founder and CEO of Citadel speaks at the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, USA, May 6, 2024.
David Swanson | Reuters
Billionaire Ken Griffin’s string of hedge funds at Citadel posted small gains in what proved to be a volatile month in August as markets grappled with a rising growth scare.
Citadel’s multi-strategy Wellington fund gained about 1% in August, bringing its year-to-date return to 9.9%, according to a person familiar with the returns who spoke on condition of anonymity because the performance figures are private. All five strategies used in the flagship fund – commodities, equities, fixed income, credit and quantitative – were positive for the month, the person said.
The Miami-based firm’s tactical trading fund rose 1.5% last month, up 14.5% from the year before. The equity fund, which uses a long/short strategy, rose by 0.8%, bringing the return for 2024 to 9.3%.
Citadel declined to comment. The hedge fund complex had approximately $63 billion in assets under management as of August 1.
Volatility made a strong comeback in August after recession fears were reignited by a weak jobs report in July. On August 5, the S&P 500 fell 3%, its worst day since September 2022. Still, the market recovered quickly, with the stock benchmark rising 2.3% at the end of August. The S&P 500 now has a lead of more than 15% through 2024.
Overall, the hedge fund community has recently shifted into defensive mode as macroeconomic uncertainty increased. Hedge funds net sold global equities recently for the seventh week in a row, driven by sales of communications services, financial sector stocks and consumer staples, Goldman Sachs prime brokerage data shows.