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 yr, in response to three individuals accustomed to the matter, serving to to drive robust total efficiency for one of many world’s largest funds.
Citadel, led by Chicago billionaire Ken Griffin, benefited from beneficial properties throughout the commodities enterprise in oil, energy, pure fuel and agriculture markets this yr, the individuals 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 yr by means of November, placing it on observe to have its finest yr since 2012, one individual accustomed to the matter stated.
All 5 of the fund’s core funding methods have constructive returns for the yr, the individual added.
A spokesperson for the corporate declined to remark.
Vitality markets swung wildly this yr because the coronavirus pandemic crushed international gas 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 acquire since December 1999, and is up 7.3% year-to-date.
Multi-strategy hedge funds – those who wager on a broad array of markets utilizing groups of merchants, leverage and centralized danger administration – particularly have flourished this yr.
Citadel, which had about $35 billion in belongings below administration as of Oct. 1, just lately employed a former Glencore vitality derivatives dealer to move its first commodities buying and selling workforce 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 fuel 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 workforce earlier this yr.
Final yr, Citadel’s commodities enterprise was up by not less than $1 billion, boosted by robust beneficial properties in European pure fuel and energy buying and selling.
(Reporting by Devika Krishna Kumar in New York Modifying by Alexandra Hudson and Nick Zieminski)
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