Major hedge fund moguls like Ken Griffin, Steve Cohen and Izzy Englander have failed to keep pace with the S&P 500 and Nasdaq in what has been a tough year for asset managers.
Although Griffin's Citadel led the pack in terms of performance, his flagship fund (the name usually given to premier funds) only posted a 15.3% gain for the year. According to reports.
In contrast, the S&P rose 24% and the Nasdaq rose 43%, pushed higher by top-performing tech stocks like Nvidia.
Returns for other large funds were even lower. Steve Cohen's Point72 Asset Management ended the year up 10.6%, Izzy Englander's Millennium Management rose 10% and DE Shaw's flagship fund returned 9.6%. These reports are further.
Citadel and DE Shaw's non-flagship funds performed even worse.
Citadel's tactical trading funds yielded 14.8%, its stock funds yielded 11.6%, and its bond funds yielded 10.9%.
The Oculus Fund's return on the DE show was 7.8%.
Small hedge funds ended the year at even lower levels than large hedge funds.
Michael Gelband's Exodus Points ended the year up 7.3%, Veriton returned 8.2%, Loren Capital 5%, Minnesota-based Wally 3.9%, Schoenfeld Strategic Partners 3%, Baryasny returned 2.7%.
There is one notable exception. A lesser-known fund, Discovery Capital, managed to return 48%.
2023 has been marked by volatility, with local bank failures, war in the Middle East, and ongoing inflation, but for active money managers who often profit from market uncertainty, this has clearly led to higher profits. There wasn't.
When major indexes plummeted in 2022, hedge fund managers were able to exploit volatility to generate huge profits.
In 2022, while the S&P was down nearly 20% and the Nasdaq was down about 33%, AQR gained 44% and Citadel's flagship entertainment returned 38%.
DE Shaw was up nearly 25%, Millennium was up 12% and Point72 ended the year up 10%.
In recent years, some investors discussed It pays to invest in hedge funds, given that they often deliver disappointing returns.
Unlike hedge funds, which typically charge a 2% management fee, deduct 20% from all returns, and only accept cash from large investors, anyone can easily invest in major indexes and lock in profits. can.
