Ken Griffin’s flagship hedge fund Citadel returns 8% in September on market liquidation

The volatile September was a golden opportunity for billionaire investor Ken Griffin to shine as his main hedge fund crushed the market with outperformance.

Citadel’s flagship multi-strategy fund, Wellington, gained 7.8% in September, bringing its year-to-date performance to 18.5%, according to a person familiar with the returns.

The fund’s five investment strategies – stocks, commodities, global fixed income, and macro, credit and quantitative strategies – all posted gains last month, the person said.

The stock market as a whole took a roller coaster ride in September as fears of inflation, slower growth and rising rates kept investors spellbound. The S&P 500 fell 4.8% last month, posting its worst month since March 2020 and breaking a seven-month winning streak. The Dow blue chips and the Nasdaq Composite fell 4.3% and 5.3%, respectively, suffering their worst months of the year.

The hedge fund industry has attracted new capital this year as the return of volatility has pushed investors towards alternative assets. Hedge funds registered an additional $ 12 billion in inflows in August, bringing total assets under management to a record $ 3,622 billion, according to eVestment data.

Citadel’s other multi-strategy fund, Tactical Trading, gained 3.9% in September and is up 14.1% this year.

The hedge fund community gained around 10% in 2021 through the end of August, according to HFR. Citadel’s feedback was first reported by Business Insider.