Citadel has become the most successful hedge fund after making $16 billion last year.
Founded and managed by Ken Griffin, the Miami-based fund topped the estimated 2022 ranking of the world’s best performing hedge funds. From LCH Investments NV. That big gain came as many other investors suffered from the stock and bond market crash.
Citadel’s record-breaking performance last year brought the fund’s total profits since inception to nearly $66 billion. That took Ray Dalio’s Bridgewater off the top spot for the first time in seven years, taking his $58.4 billion profit.
Dalio’s funds earned $6.2 billion last year, bringing total assets under management to $81 billion. Citadel manages his $62 billion fortune.
“[Citadel’s $16 billion profit] even exceed [John] Paulson’s 2007 profit is said to be ‘the biggest deal ever’,” LCH Investments Chairman Rick Soffer said in a press release on Monday.
Investor Paulson made $15 billion in 2007 after betting that the value of securities backed by subprime mortgages would crash.
“[Citadel’s] The rise in rankings over the past few years has been impressive,” added Sopher.
Soffer said Citadel, founded in 1990, has “multiple profit streams” and does not rely on investment strategies that have been tied to rising asset prices.
Overall, the top 20 hedge funds made $22.4 billion. LHC Investments data shows net profits in 2022 are down nearly 66% from the year before when the market was booming. In comparison, the S&P 500 Index has fallen by about. 19% last year.
Citadel told CNN it does not comment on stories related to the company’s performance.
Founded in 1969, LCH is the oldest hedge fund in the world.