Kenneth C. Griffin (R) addressed attendees at The New York Times Dealbook Summit 2024, held at Jazz at Lincoln Center on December 4, 2024, in New York City. Eugene Gologursky | Getty Images
Billionaire investor Ken Griffin’s prominent hedge fund saw gains amidst a tumultuous January, according to a source familiar with the fund’s performance. Citadel’s flagship multistrategy fund, Wellington, increased by 1.4% in January, following an impressive 15.1% rise earlier in 2024. The source, who requested anonymity due to the confidential nature of the performance data, noted that all five strategies employed by the fund—commodities, equities, fixed income, credit, and quantitative—posted positive returns for the month.
Additionally, Citadel’s tactical trading fund experienced a gain of 2.7% in January, matching the performance of its equities fund, which operates on a long/short strategy. Meanwhile, the firm’s global fixed-income fund recorded a 1.9% return. Citadel, which began the year managing $65 billion in assets, opted not to provide further comments.
January was characterized by significant market fluctuations as investors reacted to President Donald Trump’s protectionist policies. A notable sell-off occurred at the end of the month, triggered by a new Chinese AI competitor, DeepSeek, which had a detrimental impact on Nvidia and other major technology stocks.
The S&P 500 index rose by 2.7% in January and has gained 1.9% in 2025, following a remarkable two-year performance in 2023 and 2024. Last year, the equity benchmark achieved back-to-back annual gains exceeding 20%, with a two-year increase of 53%, marking the strongest performance since 1997 and 1998 when it surged nearly 66%.
Prior to the new administration assuming office on January 20, Griffin expressed concerns regarding the hefty tariffs proposed by Trump, warning that they could lead to crony capitalism. He indicated that while domestic companies might see short-term advantages due to weakened competitors, the long-term effects of tariffs could undermine corporate America and the overall economy, as companies would struggle with decreased competitiveness and productivity.
