Ken Griffin’s Citadel plans to return about $7 billion to clients after double-digit gains in his multi-strategy hedge funds over the past two years pushed assets to $63 billion.
The firm’s flagship Wellington fund gained about 15% through November, according to a person familiar with the matter, after gaining 38% in 2022. The Wall Street Journal previously reported on Citadel’s plans.
Hedge fund managers sometimes return capital to investors to prevent their funds from growing too large to make profitable investments in certain asset classes. Miami-based Citadel routinely returns profits to customers.
A company spokesperson declined to comment.
Citadel and other multi-manager hedge funds have experienced explosive growth in recent years as investors seek the relative stability and steady returns these strategies aim to deliver. Such companies divide their money among dozens or even hundreds of teams that operate somewhat independently across a range of markets and strategies.
Citadel’s performance is an outlier among its multi-strategy peers, many of which have posted single-digit returns this year.
The company is returning capital in December and January and expects to start next year with $58 billion in assets.