MILANO – Ken Griffin enters the history of hedge funds, speculative funds capable of riding both positive markets and a negative environment with their bets. Its bottom Citadel in fact, he gave his customers a check for 16 billion dollars in profits, setting an industry record.
The record was tracked by LCH Investmentsindustry fund of funds. Collectively, the top 20 hedges combined $22.4 billion in client profits, net of detached fees. Citadel therefore took the lion’s share and surpassed the 15 billion it had been able to generate John Paulsonwhen, in 2007, he rightly bet against i subprime loans. A move that allowed him to go down in history in a book as the “greatest trade ever”, the best play ever made on the market.
Among hedges, over the past year in which stock markets and bonds both performed heavily negatively, there has been a very strong polarization between the giants and the smaller ones. Overall the industry lost a whopping $208 billion, with LCH estimating a 3.4% return for the top 20 managers while the rest of the funds lost 8.2%.
Citadel, which has more than $60 billion in assets under management, actually reported $28 billion in gross profits from its trading operations over the course of 2022, meaning it’s loaded with investors – a fifth of whom are its own employees, remember the Ft – no less than 12 billion in performance-related expenses and commissions.
With this result, Citadel places itself ahead of Bridgewater on Ray Dalio. Another case of the year was that of Tiger Globalthis time in the negative: it lost 56%