Citadel Fund Said to Gain 2% Last Month in Back-to-Black Quarter

  • Wellington had been down as much as 9% earlier in the year
  • Tactical Trading, Global Fixed Income also up during September

Tough year? Not anymore.

Hedge fund giant Citadel, which posted losses amid market turmoil in the first quarter, saw most of its hedge funds return to profitability in the third quarter.

The firm’s flagship multistrategy Wellington fund rose 2 percent in September, bringing its gain for the year to 2.6 percent, according to a person with knowledge of the matter. The fund posted a 7.3 percent gain last quarter, said the person, who asked not to be named because the information is private. Wellington had been down as much as 9 percent in early March after losses that came in large part from its Surveyor unit.

The Chicago-based firm’s Tactical Trading fund rose 1.75 percent last month to bring gains for the quarter to 7.2 percent, according to the person. That fund, which was down as much as 9.5 percent in early March, was up 1.8 percent in 2016 through September.

Citadel’s Global Equities fund rose 2.1 percent last month, while its Global Fixed Income fund gained 3.2 percent, the person said. The fixed-income fund posted a 7.5 percent return in the first three quarters. The stock fund was down 0.2 percent this year at the end of September, but erased that loss in early October.

Julia Kosygina, a spokeswoman for Ken Griffin’s $26 billion firm, declined to comment on the performance.

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