Citadel posts record revenues for hedge fund, securities ops in 2022 – source

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(Reuters) – Kenneth Griffin’s Citadel marked record revenues in its hedge fund and electronic-trading businesses for 2022 despite turmoil in global capital markets, a source familiar with the matter said on Thursday.

The hedge fund operation made about $28 billion in revenue, while Citadel Securities, one of the world’s biggest electronic-trading firms, brought in $7.5 billion.

Record revenues from the hedge fund unit comes in a year of stellar performance for Citadel’s funds. Its flagship fund Wellington posted gains of 38.1% last year, while the fixed income fund went up 32.58%, for instance, according to the source.

The hedge fund was also expected to return about $7 billion in profits to investors in the first week of January after a stellar performance last year, a source familiar with the matter had told Reuters in December.

Citadel, which manages roughly $60 billion in assets, did not immediately respond to a Reuters request for comment on the matter.

The Wall Street Journal reported earlier on Citadel’s record revenues.

Fears of interest rate hikes and the Russia-Ukraine war weighed on capital markets throughout 2022, leaving the benchmark S&P 500 down about 19%, but hedge funds have weathered the downturn better than other financial firms.

(Reporting by Manya Saini in Bengaluru and Carolina Mandl in New York; Editing by Devika Syamnath and Marguerita Choy)

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