Stock Groups

Ken Griffin’s Citadel flagship hedge fund gains nearly 5% during January’s tech rout


Citadel founder Ken Griffin is the CEO.

Reuters| Reuters

Ken Griffin, billionaire investor and hedge fund manager, decimated the market in January. A spike in volatility combined with a sharp sell-off of growth stocks made for a favorable environment for traders who want to make quick money.

A person with knowledge of the results said that Citadel’s flagship multistrategic fund Wellington lost 4.71% over the past month.

Citadel’s global fixed Income fund had a better performance with a return rate of 4.911%. Its equities funds gained 0.89% while their tactical trading strategy rose by 1.79%.

In an era of wild price swings on Wall Street, the firm performed admirably. the Federal Reserve’s hawkish policy pivot in focus. Policy pivot in focus S&P 500It dropped by more than 5 percent in March 2019, its lowest month since March 2020. Tech-heavy markets were up. Nasdaq CompositeIt fell to correction territory (or more than 10%) from its previous record high.

The volatile January was actually a good month for the entire hedge fund industry. The market performed better than all major categories of hedge funds last month, with those that are least closely related to the market providing the highest returns. according to data from Bank of America.

Surging bond yields caused hedge funds to begin selling growth-focused technology shares in 2022 at a rate not seen for ten years. Goldman Sachs’ prime brokerage data.

Technology stocks are sensitive to rising yields as increased debt costs could hinder growth and reduce their cash flow.

CNBC Pro: Stock pickings and investment trends