Jake McMorine - Rec2Rec’s Post

Ken Griffin’s Citadel plans to return about $7 billion to clients after double-digit gains in its multistrategy hedge funds over the past two years bumped assets to $63 billion. The firm’s flagship Wellington fund gained about 15% through November, according to a person familiar with the matter, after a 38% gain in 2022. The Wall Street Journal reported Citadel’s plans earlier. Hedge fund managers sometimes give capital back to investors to keep their funds from growing too large to make profitable investments in certain asset classes. Miami-based Citadel routinely returns profits to clients. Read more: https://lnkd.in/dZ4F4CER

A deep dive look at #hedgefunds allocating to, well, other hedge funds. With thoughts from Paloma, Boothbay and many others on this continuing trend that is both old and new. This story is part our hedge fund special report that you can access here: https://lnkd.in/emRgkviv https://lnkd.in/e35qvQ3p

Citadel announces plans to return about $7 billion to clients. This move follows double-digit gains in its multistrategy hedge funds over the past two years, pushing assets to an impressive $63 billion. Citadel's flagship Wellington fund, known for its resilience and agility, notched up a remarkable 15% gain through November, capping off an outstanding 38% gain in 2022. In an industry where stability and steady returns are highly sought after, Citadel's performance stands out as an outlier among its multistrategy peers. Multimanager hedge funds, like Citadel, have seen explosive growth in recent years. Investors have been drawn to the relative stability and consistent returns offered by these strategies, which divide funds across numerous teams operating independently across various markets and strategies. While many multistrategy peers have posted single-digit returns this year, Citadel's success remains a testament to its unique approach and market acumen. The capital return, scheduled for December and January, positions Citadel to start the new year with $58 billion in assets. This strategic move aligns with the practice of hedge fund managers returning capital to prevent funds from growing too large, ensuring the ability to make profitable investments in specific asset classes. #HedgeFunds #FinanceNews #Investing #Citadel

Have you heard that Citadel is handing back about $7bn in profits to clients? (Bloomberg) -- Ken Griffin’s Citadel plans to return about $7 billion to clients after double-digit gains in its multi-strategy hedge funds over the past two years bumped assets to $63 billion. The firm’s flagship Wellington fund gained about 15% through November, according to a person familiar with the matter, after a 38% gain in 2022. The Wall Street Journal reported Citadel’s plans earlier. Hedge fund managers sometimes give capital back to investors to keep their funds from growing too large to make profitable investments in certain asset classes. Miami-based Citadel routinely returns profits to clients. Citadel and other multimanager hedge funds have experienced explosive growth over the past few years as investors sought the relative stability and steady returns these strategies aim to offer. Such firms divvy up money across dozens or even hundreds of teams that operate somewhat independently across a range of markets and strategies. Citadel’s performance is an outlier among its multi-strategy peers, many of which have posted single-digit returns this year

An article from Bloomberg underscores the shifting dynamics within hedge fund management, as illustrated by the recent developments at ExodusPoint Capital Management, LP. Despite an auspicious debut that set records, the fund, helmed by Michael Gelband, has confronted a substantial exodus of capital for the second year running, amounting to a staggering $1 billion in 2023 alone. This continued withdrawal suggests a pronounced shift in investor sentiment, possibly swayed by the comparative allure of secure, high-yield treasuries and the underwhelming performance of high-fee hedge funds. ExodusPoint's response has been to revitalize its operations through strategic staffing, aiming to bolster its equities division and realign itself with the industry frontrunners. The scenario at ExodusPoint highlights a critical juncture for investors and fund managers alike, as they navigate the delicate balance between innovation and stability in an evolving market. The key to longevity, it seems, lies in adaptability and the readiness to reinvent strategy when traditional approaches falter. How do industry professionals perceive the shifts in hedge fund investments in light of such transitions? Are high-fee multi-strategy hedge funds still viable in the face of rising treasury yields and growing investor skepticism? Join the conversation and share your insights below! #HedgeFunds #InvestorSentiment #FinancialMarkets #AssetManagement #WealthManagement #ExodusPoint #StrategicInvesting #FINTRX https://lnkd.in/ddDi3-aQ

Read the press release on the Unlimited Hedge Fund Barometer - A Guide to Performance and Positioning of The Global Hedge Fund Industry. #hedgefunds #alpha #alternativestrategies https://lnkd.in/eVk96xVA

Are you wondering what is driving your performance? Discover how a 'Tiger Cub' hedge fund, with $Billions under management, was seeking a platform to better manage factor exposures across its portfolio. With institutional allocators emphasizing sophisticated factor criteria, the fund needed a solution that could provide an in-depth view of the factors driving their portfolio performance. Find out how in this case study: #alphastocks #fundamentalinvesting #custombaskets #riskmanagement #riskanalysis #portfoliooptimization

Hedge fund replication is getting mainstream with State Street Global Advisors announcing they are launching a hedge fund replication product shortly. While these sorts of products can be viewed as direct competitors to our work, the entire replication industry is still tiny in comparison to the 5tln AUM hedge fund industry suggesting there is *a lot* of room for everyone involved to gather assets leveraging these techniques. SSGA's entrance just further highlights how these products are getting increasing attention from the biggest asset managers. Why? Because clients don't want to have to keep paying 2&20 fees (or worse). https://lnkd.in/ewM9YKsv

As a Hedge Fund COO being able to scale both up and down with your tech stack is important. Annalices discusses with Hedgeweek. Hedge Funds and Technological Elasticity Neovest. https://lnkd.in/envzqTpx

Great to see a potential future need to scale down becoming an upfront consideration. If you have more capacity or functionality than you need it definitely makes sense to turn it off. Will be both cost beneficial and also reduce a firms environmental footprint. Ongoing management of capacity (down as well as up) is a practice that members of Sustainable Trading are working to implement. Fantastic to see it being put into practice and being rolled out to clients.