Hedge fund Citadel will reportedly return around US$5 billion (A$7.47 billion) in profits to investors at the beginning of 2026, in a bid to lower its assets under management.
The fund will begin 2026 with $67 billion in assets after returning these profits, CNBC reported. Including the $5 billion slated for 2026, it has returned $32 billion to investors since 2017.
This $5 billion does not comprise all of Citadel’s profits during the year, and the goal is to constrain the hedge fund’s capital, CNBC’s source said.
Citadel’s flagship Wellington fund gained 1.4% in November, per Reuters, and had increased by 8.3% across 2025 to date.
Its Global Equities fund was also up 13.2% in 2025’s first 11 months, while its Tactical Trading fund grew 16.3% and its Global Fixed Income fund rose 8.5%.
Last year, Citadel reported the largest net gains of any hedge fund since inception, at $83 billion.
Global hedge fund capital reached a record $4.98 trillion last quarter, according to a Hedge Fund Research (HFR) report.
“This historic growth has been driven by a combination of powerful trends, including accelerating M&A, expanding cryptocurrency investment, falling geopolitical risk, expectations for lower interest rates, and an unprecedented surge in strategic AI investment and infrastructure,” said HFR President Kenneth Heinz.
Citadel also said last week that it would open an office in Dubai in 2026, with its Fixed Income and Macro business team the first to expand to the city. It will be the 18th city to host Citadel offices.
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