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July 17, 2024
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Hedge Funds

Ken Griffin’s Citadel, Steve Cohen’s Point72 lagged 2023 market

Major hedge fund moguls including Ken Griffin, Steve Cohen, and Izzy Englander failed to keep pace with the S&P 500 and the Nasdaq in what proved to be a difficult year for money managers.  

While Griffin’s Citadel led the pack when it came to performance, his flagship fund — the name typically given the premier fund — only managed to notch gains of 15.3% for the year, according to reports.

In comparison, the S&P climbed 24% while the Nasdaq rose 43% — pushed higher by top performing tech stock like Nvidia.

Gains at other large funds were even weaker. Steve Cohen’s Point72 Asset Management ended the year up 10.6%, Izzy Englander’s Millennium Management gained 10% and D.E. Shaw’s flagship fund returned 9.6%, these reports add.

Citadel’s and D.E. Shaw’s non-flagship funds performed even more poorly.

Citadel’s tactical trading fund gained 14.8%, its equities fund yielded 11.6%, and its fixed income fund returned 10.9%.

D.E. Shaw’s oculus fund returned 7.8%. 

Steve Cohen
Steve Cohen’s Point72 ended the year with 10% returns. Corey Sipkin for the NY POST

Smaller hedge funds ended the year even lower than their larger peers.

Michael Gelband’s ExodusPoint ended the year 7.3% higher, Veriton brought in returns of 8.2%, Lauren Capital returned 5%, Minnesota-based Walleye returned 3.9%, Schonfeld Strategic Partners returned 3% and Balyasny eked out a 2.7% return.

One notable exception: A little known fund, Discovery Capital, managed to bring in returns of 48%.

While 2023 was marked by volatility — regional bank collapses, a war in the Middle East and ongoing inflation — it evidently didn’t translate to better returns for active money managers who so often profit on market uncertainty.

izzy englander
Izzy Englander’s Millennium Management saw returns of roughly 10%. Bloomberg via Getty Images

In 2022, when major indices plummeted hedge fund managers were able to capitalize on the volatility and generate huge returns.

While the S&P lost nearly 20% and the Nasdaq fell roughly 33% in 2022, AQR raked in 44%, Citadel’s flagship fun notched a 38% return.

D.E. Shaw was up nearly 25%, Millennium was up 12% and Point72 ended the year up 10%.

Over the last few years, some investors have debated whether investing is hedge funds is worth it given they often provide disappointing returns.

Unlike hedge funds which typically charge a 2% management fee, take a 20% cut on all returns, and only accept cash from large investors, anyone can easily invest in a major index — and they get to keep their profits.

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