By Sam Boughedda
Citadel is expected to return around $7 billion in profits to clients based on what it expects to be its most profitable year ever, The Wall Street Journal reported Wednesday.
Citing people familiar with the firm, the WSJ said Citadel's flagship fund is up about 32% for the year through November, profiting from bets across its strategies.
As a result, it is reported that Citadel plans to return some profits from all four of its funds at the beginning of January, although it still anticipates beginning 2023 with over $50B in assets under management.
In addition, the WSJ said other funds that have gained significantly in 2022 include Brevan Howard Asset Management, Two Sigma, and D.E. Shaw. Those firms are also said to have told clients in certain funds they plan to return some profits.
The current environment has helped funds betting on global macroeconomic shifts flourish, while others focused on leveraged bets in growth stocks have had a challenging year. Citadel and others similar have made impressive gains despite the S&P 500's decline in 2022.
The positive performance is said to have resulted in some managers pushing to win more advantageous terms from their clients.