Single-strategy funds pay off for Citadel

Citadel of investing

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Citadel has raised standalone capital for its internal teams

In finance, as in comedy, timing is everything.

So when Citadel decided in 2008 to launch a series of single-strategy hedge funds, the timing seemed to be all wrong.

At the time financial markets were in turmoil and Citadel’s flagship multi-strategy funds were facing big losses, which would ultimately exceed 50% for the year.

However, Citadel is having the last laugh.

Five years on its single-strategy funds have produced stellar returns and now account for almost half of its $15 billion in hedge fun