Ken Griffin, CEO of Citadel, on CNBC’s Delivering Alpha on September 28, 2022.
Scott Mlyn | CNBC
Billionaire investor Ken Griffin’s flagship hedge fund rose last month as volatility returned amid debate over rate cuts, according to a person familiar with the returns.
Wellington’s flagship multi-strategy fund Citadel rose 1.9% in January after gaining 15.3% last year, according to the person, who spoke anonymously because performance figures are private. All five strategies used by the fund – commodities, equities, fixed income, credit and quantitative – were all positive during the month, the source said.
The Miami-based firm’s tactical trading fund gained 2.6% for the month, while its stock fund, which uses a long/short strategy, returned 2.1%, the person said. Meanwhile, Citadel’s global fixed income fund returned 1.7%.
The Citadel declined to comment.
The stock market started the year rallying but has slowed recently as hopes of a rate cut have waned. Federal Reserve Chairman Jerome Powell said in late January that a March rate cut was unlikely, leading to the S&P 500’s biggest daily loss since September. The stock index rose 1.6% in January.
Citadel’s CEO recently spoke positively about the US economy, noting that the Federal Reserve is planning a soft landing this year. He said the overall economy now looks “pretty good” and the latest data points to a strong labor market, healthy GDP growth and inflation slowing at a faster pace than expected.
The hedge fund giant started 2024 with $56 billion in assets under management.
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