Hedge giant Citadel soars to 25pc return

Michael Bow
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HEDGE fund giant Citadel, one of the biggest investors in the world, continued its winning streak last year after revealing a 25 per cent return for its main funds in 2012.

Citadel, led by founder and chief executive Ken Griffin, told investors it had been one of the firm’s strongest years of performance, after it surpassed the six per cent average return delivered across the rest of the industry.

Griffin, who set up Citadel in 1990, has had an outstanding performance following the financial crisis, delivering a 62 per cent return in 2009. In 2010 he notched up an 11 per cent return and last year clocked up a 20 per cent return for investors.

Citadel, based in Chicago, has about $14bn (£8.7bn) in assets under management and is one of the most prominent hedge strategies in the world following its stellar success.

The funds hitting 25 per cent, Kensington and Wellington, have about $7bn of investors’ money in them, with one pitched at US investors and the other overseas investors. Citadel also runs $3bn of US equity money. In 2012 this delivered returns of 17.8 per cent compared to the S&P 500 which was up 13 per cent.