Millennium and Citadel deliver double-digit returns but trail smaller rivals
- Hedge fund giants Millennium and Citadel posted double-digit returns to investors in 2025, marking a recovery from a challenging first half of the year.
- Izzy Englander's millennium delivered returns in the double digits, while Ken Griffin's Citadel also achieved positive, though comparatively lower, double-digit gains.
- The success of Bridgewater's Pure alpha fund stands out as the best annual performance as 2008.This suggests a potential shift in market conditions favoring Bridgewater's investment strategies.
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Hedge Fund Performance: 2025 Rebound for Industry Giants, Smaller Firms Lead Gains
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Hedge fund giants Millennium and Citadel posted double-digit returns to investors in 2025, marking a recovery from a challenging first half of the year. however, their performance trailed behind many smaller firms specializing in the “multi-manager” sector, according to a report by the Financial times.
Key Performance Figures
Izzy Englander’s millennium delivered returns in the double digits, while Ken Griffin’s Citadel also achieved positive, though comparatively lower, double-digit gains. Notably, Bridgewater associates’ Pure Alpha hedge fund experienced its most profitable year since its founding 50 years ago, with a 33% return as of December 29, 2025.
The success of Bridgewater’s Pure alpha fund stands out as the best annual performance as 2008.This suggests a potential shift in market conditions favoring Bridgewater’s investment strategies.
| Hedge Fund | 2025 Return (Approximate) |
|---|---|
| Bridgewater associates (Pure Alpha) | 33% |
| Millennium | Double-Digit |
| Citadel | Double-Digit (Lower than Millennium) |
Multi-Manager Funds Lead the Way
The Financial Times report highlights the strong performance of multi-manager funds. These funds employ a variety of investment strategies and managers, allowing them to adapt more quickly to changing market conditions. This diversification appears to have been a key factor in their success during 2025. Funds like ExodusPoint and Schonfeld also saw significant gains, though specific figures were not disclosed in the initial report.
The outperformance of multi-manager funds suggests investors are increasingly seeking strategies that can navigate market volatility and capitalize on diverse opportunities.
Industry Response and Lack of Comment
Millennium, ExodusPoint, Schonfeld, Bridgewater, and Citadel all declined to comment on the specific performance figures reported by the Financial Times. This is a common practice within the hedge fund industry, where firms often maintain confidentiality regarding their investment strategies