Monday, January 28, 2013

Citadel’s Bumper Year Counts – It’s All Gravy Now




From hedgefundinsight: Although Citadel Investment Group’s flagship funds, Wellington Fund and the Kensington Fund, will rightfully get attention for rising 25.9% and 24.9% respectively, the Chicago-based Groups’ investment success in 2012 was broad. All of the Citadel hedge funds were up by more than 10% in a year when  the HFRI Fund Weighted Composite Index gained 6.2%.

The Tactical Fund, a $1.27 billion high-frequency trading stock fund, reported a net return of 25.7 percent for last year, and the Global Equities Fund made a gain of 17.8 percent. For the last named a positive return is not unusual – for the last eleven years straight the Global Equities team at Citadel have made a profitable contribution to the firm.

According to Citadel founder Ken Griffin’s letter to investors:   “Constant idea generation fuels the success of our diversified investment portfolios. We believe that much of our competitive advantage in security selection is driven by a sophisticated understanding of the factors that move price. Our research efforts focus on understanding what truly matters in a data-rich world.....” Yada yada yada….

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