Ken Griffin, founder and CEO of Citadel, speaks at the 2024 Milken Global Conference at the Beverly Hilton in Beverly Hills, California on May 6, 2024.
David Swanson | Reuters
Billionaire investor Ken Griffin's hedge fund group at Citadel posted small gains in August, a month of volatility as markets grappled with rising growth fears.
Citadel's multi-strategy Wellington fund rose about 1 percent in August, bringing its annual return to 9.9 percent, according to a person familiar with the returns who spoke on condition of anonymity because performance numbers are confidential. All five of the flagship fund's strategies – commodities, equities, fixed income, credit and quantitative investing – were positive for the month, the person said.
The Miami-based firm's tactical trading fund rose 1.5 percent last month and is up 14.5 percent year-over-year. Its equity fund, which follows a long/short strategy, gained 0.8 percent, raising its 2024 return to 9.3 percent.
Citadel declined to comment. The hedge fund complex managed about $63 billion in assets as of August 1.
Volatility made a strong comeback in August as recession fears were reignited by a weak July jobs report. On August 5, the S&P 500 fell 3%, its worst day since September 2022. Still, the market quickly recovered, and the stock index ended August up 2.3%. The S&P 500 is now up more than 15% in 2024.
Overall, the hedge fund community has recently shifted to a defensive stance amid increasing macroeconomic uncertainty. According to data from Goldman Sachs' prime brokerage, hedge funds recently sold global equities for the seventh consecutive week, driven by sales of stocks in the communications services, financials and consumer goods sectors.