By Devika Krishna Kumar NEW YORK, Dec 10 (Reuters) - Hedge
By Devika Krishna Kumar
NEW YORK, Dec 10 (Reuters) – Hedge fund Citadel’s investments in commodities returned greater than $1 billion this 12 months, in line with three folks accustomed to the matter, serving to to drive robust general efficiency for one of many world’s largest funds.
The fund, led by Chicago billionaire Ken Griffin, benefited from good points buying and selling in oil, energy, pure gasoline and agriculture markets this 12 months, the folks stated.
Citadel’s flagship Wellington fund, which practices a multi-strategy array of investments on shares, bonds, commodities and different securities utilizing groups of merchants, is up by 21.2% this 12 months by November, placing it on monitor to have its greatest 12 months since 2012, one particular person accustomed to the matter stated.
All 5 of the fund’s core funding methods have constructive returns for the 12 months, the particular person added.
A spokesperson for the corporate declined to remark.
Power markets swung wildly this 12 months because the coronavirus pandemic crushed world gasoline demand and created distortions, permitting buying and selling alternatives for hedge funds, oil majors and commodities retailers.
The HFRI Fund Weighted Composite Index – which tracks the efficiency of the worldwide hedge fund trade – gained 6.2% in November, the strongest month-to-month achieve since December 1999, and is up 7.3% year-to-date.
Citadel, which had about $35 billion in belongings beneath administration as of Oct. 1, lately employed a former Glencore vitality derivatives dealer to go its first commodities buying and selling staff in Asia, and recruited former Morgan Stanley commodities buying and selling chief Jay Rubenstein.
The fund additionally employed Eike Schick, former head of the European pure gasoline desk at Freepoint Commodities, as a portfolio supervisor in London, and Mark Tawney, who ran Munich Re Buying and selling, joined the corporate to guide a climate derivatives staff earlier this 12 months.
Final 12 months, Citadel’s commodities enterprise was up by at the very least $1 billion, boosted by robust good points in European pure gasoline and energy buying and selling.
(Reporting by Devika Krishna Kumar in New York Modifying by Alexandra Hudson)
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