Citadel Beats Multi-Strategy Rivals in Recovery From September

(Bloomberg) -- Billionaire Ken Griffin’s flagship hedge fund is beating its biggest multi-strategy rivals as the industry rebounds from surprise market shifts.

Citadel’s Wellington fund gained 15.2% this year after rising 1.1% last month, according to people familiar with the matter. Point72 Asset Management jumped about 12% in the first 10 months and 1.5% in October.

The multi-strategy funds are recovering from September when a broad market shift from long-favored momentum stocks to value equities hurt performance. The managers also benefited from a 2% rise in the S&P 500 Index last month, extending robust gains for the year.

Overall, the hedge fund industry is facing accelerated outflows after years of lackluster returns. Investors pulled about $77 billion from the industry through September this year, according to data compiled by eVestment.

Many multi-strategy funds posted gains in October, with some reversing losses from the prior month.

Representatives for the firms declined to comment.

--With assistance from Katherine Burton.

To contact the reporters on this story: Hema Parmar in New York at hparmar6@bloomberg.net;Melissa Karsh in New York at mkarsh@bloomberg.net

To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Vincent Bielski, Josh Friedman

©2019 Bloomberg L.P.