Multi-Strategy Hedge Funds Bounce Back

(Bloomberg) -- Ken Griffin’s Citadel and Steve Cohen’s Point72 Asset Management posted gains last month as multi-strategy hedge funds capitalized on a rebound in markets.

Citadel rose 3.6 percent in its Wellington hedge fund and Point72 jumped about 3 percent, according to people familiar with the matter. Balyasny Asset Management, run by Dmitry Balyasny, saw its Atlas Enhanced Fund jump 3.4 percent, rebounding from a 7.1 percent loss last year.

Multi-strategy funds, which trade across assets from company stocks and bonds to currencies and interest rates, took advantage of a stronger trading environment, pivoting from last quarter’s market tumult. The S&P 500 index advanced 7.9 percent last month while a Bloomberg Barclays global bond index gained 1.5 percent.

Multi-Strategy Hedge Funds Bounce Back

Several other large funds lagged their peers. Michael Gelband’s ExodusPoint Capital Management, which last year raised $8 billion, gained 0.9 percent. Izzy Englander’s $35 billion Millennium Management posted a 1.3 percent return last month.

Citadel, which manages more than $28 billion, profited from its equities, fixed income, macro and commodity wagers, one person said. Its other strategies also rewarded investors last month. The Global Equities fund rose 1.5 percent, the Tactical Trading fund finished up 2.7 percent as did the Global Fixed Income fund, the person said.

Balyasny has been bleeding assets and was expected to start this year with about $7 billion, down from $11.3 billion in early 2018.

Representatives for the firms declined to comment.

©2019 Bloomberg L.P.