Citadel plans to return about $5 billion in profits earned in 2025 to investors early next year, according to a person familiar with the matter.
The firm's flagship multistrategy fund, known as Wellington, had gained 9.3% over the past year through last week, said the person, who declined to be named discussing performance details.
The returned profit is not all that was earned in 2025, the person said, but rather a way to limit capital to better fit the opportunities the company sees in the new year. As a result, Citadel will start with $67 billion in assets in 2026, up from $72 billion currently under management, the person said.
A spokesman for Citadel declined to comment.
The company doesn't decide to distribute profits every year, but since 2017 (including this year's expected refund), Citadel has returned $32 billion in profits to its investors.
According to LCH Investments, Citadel was ranked as the most profitable hedge fund based on net profits since its inception. As of 2024, Citadel has generated net income of $83 billion since its founding in 1990. That number is expected to rise to over $88 billion when the new rankings are released in January.