Best commerce ever? Citadel’s $16 billion haul smashes hedge fund information

Citadel is now essentially the most profitable hedge fund ever after it made $16 billion final yr — the largest annual windfall on file.

The Miami-based fund, based and run by Ken Griffin, topped the 2022 rating of the world’s best-performing hedge funds primarily based on estimates from LCH Investments NV. Its large features got here as many different traders suffered from steep drops in fairness and bond markets.

Citadel’s record-breaking efficiency final yr took complete features for the fund since its inception to just about $66 billion. That knocked Ray Dalio’s Bridgewater — with features of $58.4 billion — off the highest spot for the primary time in seven years.

Dalio’s fund made $6.2 billion final yr, bringing complete property beneath administration to $81 billion. Citadel manages $62 billion in property.

“[Citadel’s $16 billion profit] even surpasses [John] Paulson’s 2007 achieve, which has been described as ‘the best commerce ever,’” Rick Sopher, chairman of LCH Investments, stated in a press launch on Monday.

Paulson, an investor, made $15 billion in 2007 after he wager that the worth of securities backed by subprime mortgages would collapse, an occasion that helped set off the worldwide monetary disaster.

“[Citadel’s] progress up the rankings prior to now few years has been outstanding,” Sopher added.

Sopher stated that Citadel, which began in 1990, doesn’t depend on an funding technique tied to rising asset costs, and has “a number of sources of earnings,” two components which can clarify its file achieve regardless of a risky journey for markets final yr.

Total, the highest 20 hedge funds made $22.4 billion in internet features in 2022, down virtually 66% from the yr earlier than when markets had been hovering, based on LHC Funding information. The S&P 500 index, by comparability, misplaced about 19% final yr.

Citadel instructed CNN that it might not touch upon a narrative associated to its efficiency.

LCH was launched in 1969 and is the world’s oldest fund of hedge funds.