FILE PHOTO: Ken Griffin, Founder and CEO, Citadel, speaks throughout the Milken Institute’s 22nd annual Global Conference in Beverly Hills, California, U.S., April 30, 2019. REUTERS/Mike Blake
NEW YORK (Reuters) – Citadel’s commodities investments are up at the very least $1 billion for the year, in line with three sources conversant in the matter, serving to to drive robust general efficiency at considered one of the world’s largest hedge funds.
Citadel, which manages greater than $30 billion in belongings, has profited from a robust efficiency in European pure fuel and energy buying and selling, two of the sources stated. Its flagship Wellington fund has gained greater than 15% this year by means of October, one supply near the fund stated.
A spokesperson for Citadel, led by Chicago billionaire Ken Griffin, declined to remark.
British and Dutch fuel costs, benchmarks for Europe-wide fuel gross sales in addition to some liquefied pure fuel (LNG) markets, misplaced half their worth from September 2018 by means of October 2019. They hit 10-year lows in June, weighed down by an inflow of LNG and fuel provides from Russia, the United States and others.
Citadel’s hedge funds make investments throughout asset courses similar to equities, fastened revenue and credit score. Commodities, considered one of Citadel’s 5 core funding methods, invests in each monetary and bodily markets.
Hedge fund business returns have been muted in recent times prompting some massive names to wind down operations, resembling Jamison Capital’s macro fund, T. Boone Pickens’ BP Capital and Andy Hall’s primary hedge fund at Astenbeck Capital Management.
Citadel is amongst a handful of multi-technique funds which have carried out properly regardless of the difficult commodities buying and selling surroundings.
Industry returns have averaged about 5%, in accordance with the Hedge Fund Research (HFR) asset weighted composite index whereas returns in the HFR macro commodity index have averaged positive factors of about four% year-to-date.
Earlier this month, Citadel named agency veteran James Yeh president and co-chief funding officer for Citadel’s hedge fund business, efficient Jan. 1, 2020, in accordance with a letter seen by Reuters.
Reporting by Devika Krishna Kumar in New York; further reporting by Lawrence Delevingne