Welcome to Extreme Investor Network, where we provide you with exclusive insights and expert analysis on the latest in the world of finance. Today, we’re diving into the recent performance of billionaire investor Ken Griffin’s hedge funds at Citadel during a volatile month in August.
Despite the market turbulence, Citadel’s multistrategy Wellington fund saw a small gain of about 1% in August, bringing its year-to-date return to an impressive 9.9%. This success was driven by all five strategies used in the flagship fund — commodities, equities, fixed income, credit, and quantitative — posting positive returns for the month.
Additionally, Citadel’s tactical trading fund rose by 1.5% in August, with a year-to-date return of 14.5%. The firm’s equities fund, employing a long/short strategy, also saw a slight increase of 0.8%, pushing its 2024 returns to 9.3%. With Citadel managing approximately $63 billion in assets as of August 1, these results are a testament to their strategic investment decisions.
In the midst of heightened volatility fueled by renewed recession fears, the S&P 500 experienced its worst day since September 2022 on August 5, dropping 3%. However, the market quickly rebounded, ending August with a 2.3% gain and maintaining a year-to-date increase of over 15%.
As macroeconomic uncertainties continue to impact the market, the hedge fund community has shifted towards a defensive stance. Recent data from Goldman Sachs’ prime brokerage reveals that hedge funds have been selling global equities for a seventh consecutive week, particularly in communication services, financial, and consumer staples sectors.
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