Citadel, Point72 and Pershing Square Grew Well in 2014

January 13, 2015 James Heinsman Hedge Fund News

In general it was a slow year for hedge funds, but not for everyone. Chicago-based Citadel was able to take what was a challenging year for most funds and turn it into a year of excellent growth.  Citadel’s equity hedge fund realized over 23 percent returns, while their multi-strategy flagship funds, Kensington and Wellington had close to 18 percent growth.

Although these returns are smaller than many previous years for Citadel, compared to the average hedge fund return these numbers are quite good. According to the HFR index, which is a composite of many hedge funds, the average return for a fund in 2014 was only 3.6 percent. Even the S&P 500 had significantly better returns, up 11.4 percent.

Other funds that out-performed the average were Pershing Square Capital, run by Bill Ackman, and Point 72, managed by Steve Cohen. Pershing realized 40 percent growth last year, while Cohen’s fund earned a cool $3 billion, which is a return of 10 percent.

Cohen was forced to create Point 72 from the remains of SAC Capital, a traditional rival of Citadel. SAC had to transform itself when it was forced to return all its public investments and modify its structure in 2014 in response to an insider-trading settlement.

Citadel manages $23 billion today, a great recovery after the trials of 2008 when it lost billions of dollars and came close to declaring bankruptcy.

Bill Ackman, Citadel, Pershing Square, Point72, Steve Cohen,

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