It’s Kenny G’s world | Financial Times

The final data isn’t out yet, but 2022 is bound to be a bad year for the home insurance industry as a whole and a bad one for a few players.

But not for everyone!

(Reuters) – Kenneth Griffin’s Citadel showed record earnings and savings in its electronic trading business for 2022 despite turmoil in global capital markets, a source familiar with the matter said on Thursday.

The hedge fund operation made about $28 billion in revenue, while Citadel Securities, one of the world’s largest electronic trading companies, brought in $7.5 billion.

The record earnings from the hedge fund division come on the heels of a year of strong performance for Citadel Funds. Its flagship fund Wellington posted a profit of 38.1 percent last year, while this income rose 32.58 percent, for example, according to sources.

We’ve written before about how premium insurance plans like Citadel are going up these days. Macro funds ruled the roost in 2022, but many large “multistrats” also had a good year despite the breadth of the financial market.

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For example, FTAV has heard that DE Shaw’s flagship fund made 24.7 percent last year (Oculus’ flagship fund is apparently made 20 percent), while Bloomberg at the end of last year linked the return of Millennium to 10% and Brevan Howard and 18 percent. But Citadel stands out from the pack, offering a 38 percent profit and huge savings.

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By our estimation, that means Citadel will eventually leapfrog Ray Dalio’s Bridgewater as the greatest hedge fund of all time. Not bad for a former computer engineer from Boca.

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The annual amount of net profit since the beginning of LCH Investments compiled will not appear for a few weeks, but given the $28bn value reported by Reuters and WSJ that would put Citadel at $78bn (LCH will not include the value of CitSec. ).

Bridgewater, meanwhile, was having a great year until he took a serious stumble in the past few months. That has pushed the pure Alpha fund’s 2022 return from about 22 percent at the end of September to just 6 percent in early December, according to Bloomberg.

Bridgewater offers different flavors of its strategy and we do not know how much of its planned $150bn of assets under management Pure Alpha, other leveraged Pure Alpha II, its risk parity funds etc. Therefore, it is able to plan even roughly it. dollar value together for 2022 even when we see last year’s return.

But LCH estimated Bridgewater’s net worth since inception at $52.2bn last year, and despite its larger AUM, it looks like Griffin will eventually lose Dalio to the top of the table. For reference, this is what it looked like this time last year:

You see a screenshot of the interactive diagram. This is most likely due to you being offline or having JavaScript disabled in your browser.


Our guess is that after not paying attention to this position for a long time, Griffin started of course thinking about it a lot. So we think it will be pretty chuffed for the climb.

But prepare yourself for the outpouring of outrage that will hit certain parts of the internet when the news breaks.

Further reading:

– Ken Griffin, financial expert turned entrepreneur
– Multi-plan insurance is a new, higher premium
– How Ken Griffin rebuilt the Citadel walls
– What is the Ken Griffin/Mayo story?

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