Citadel, a leading hedge fund firm, is planning to return around $5 billion of its profits from 2025 to investors at the start of next year, according to a source with knowledge of the situation.
The firm's main multistrategy fund, Wellington, achieved a 9.3% gain this year up till the previous week, as per the unnamed source who shared these performance details anonymously.
This profit return does not represent all the earnings from 2025 but is instead a strategy to adjust the firm's capital to better align with expected opportunities in 2026. Consequently, Citadel will begin 2026 managing $67 billion in assets, compared to the $72 billion it oversees currently, the source noted.
Citadel's spokesperson chose not to comment on the matter.
While Citadel does not distribute profits every year, it has returned a total of $32 billion to investors since 2017, including the upcoming distribution planned for next year.
Recognized by LCH Investments as the most profitable hedge fund based on net gains since its inception, Citadel has amassed $83 billion in net gains as of 2024. This figure is expected to rise to over $88 billion with the upcoming rankings in January.