Ken Griffin, founder and CEO of Citadel, at CNBC’s Delivering Alpha summit on Sept. 28, 2022.
Scott Mlyn | CNBC
Billionaire investor Ken Griffin’s flagship hedge fund rallied final month when the broader market was rattled by tight financial coverage in addition to rising recession fears, in line with an individual conversant in the returns.
Citadel’s multistrategy flagship Wellington fund gained 1.7% in September, bringing its 2023 efficiency to 12.6%, the individual mentioned. The S&P 500 pulled again 4.9% final month, struggling its worst month of the yr. The fairness benchmark continues to be up 11% for the yr.
The market has grown extra risky and fragile as traders grapple with a higher-for-longer rate of interest regime. Shares resumed the sell-off this week because the 10-year Treasury yield surged to a 16-year excessive. Many notable traders, together with Pershing Sq.’s Invoice Ackman, have warned of a deteriorating economic system after a sequence of aggressive price hikes.
Griffin, founder and CEO of Citadel, advised CNBC final month he was skeptical that this yr’s rally, powered principally by synthetic intelligence-related shares, might be sustainable.
“I am a bit anxious that this rally can proceed,” Griffin mentioned. “Clearly one of many massive drivers of the rally has been … simply the frenzy over generative AI, which has powered many Large Tech shares. … We’re type of within the seventh or eighth inning of this rally.”
Citadel’s equities fund, which makes use of a protracted/quick technique, was up 1.1% in September and 10.7% this yr, whereas its international mounted revenue fund is 8.8% larger thus far in 2023, the individual mentioned.
Citadel had $61 billion in belongings underneath administration as of Sept. 1. The Wellington fund soared 38% in 2022 for its greatest yr ever.
Ken Griffin Citadel bucks downtrend in September, up practically 13%
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