Citadel’s $16 billion haul breaks hedge fund records


London
CNN

Citadel is now the most successful hedge fund of all time after grossing $16 billion last year – the biggest annual windfall on record.

The Miami-based fund, founded and led by Ken Griffin, topped the 2022 ranking of the world’s best-performing hedge funds based on estimates of LCH Investments SA. His huge gains came as many other investors suffered from sharp declines in stock and bond markets.

Citadel’s record performance last year brought the fund’s total earnings since inception to nearly $66 billion. It knocked Ray Dalio’s Bridgewater – with earnings of $58.4 billion – from the top spot for the first time in seven years.

Dalio’s fund brought in $6.2 billion last year, bringing total assets under management to $81 billion. Citadel manages $62 billion in assets.

“[Citadel’s $16 billion profit] even surpasses [John] Paulson’s 2007 win, which has been described as “the biggest deal of all time,” Rick Sopher, chairman of LCH Investments, said in a press release on Monday.

Paulson, an investor, won $15 billion in 2007 after betting that the value of subprime mortgage-backed securities would crash, an event that helped trigger the global financial crisis.

“[Citadel’s] the progress in the rankings over the past few years has been remarkable,” Sopher added.

Sopher said Citadel, which started in 1990, does not rely on an investment strategy linked to rising asset prices and has “multiple sources of earnings”, two factors that may explain its record gain despite market volatility over the past year.

Overall, the top 20 hedge funds made $22.4 billion in net gains in 2022, down nearly 66% from the previous year, when markets soared, according to LHC investment data. The S&P 500 index, by comparison, lost about 19% last year.

Citadel told CNN she would not comment on a story related to her performance.

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

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