Multi-strategy hedge funds posted mixed results in July as equity markets edged higher despite ongoing volatility, with Citadel emerging as a relative standout among peers including Schonfeld and Marshall Wace, according to a report by Business Insider.
Ken Griffin’s Citadel delivered a 1.3% gain in its flagship Wellington fund, bringing year-to-date performance to 4%, according to sources familiar with the matter. The performance marks a steady recovery for the Miami-based firm, which saw rare losses in February and March.
Citadel’s other strategies also delivered strong results in July, with its Tactical Trading fund u2.1% in July, and8.3% YTD, and the firm’s Global Equities fund putting on 3.1% in July, for a 6.3% YTD gain.
The S&P 500 returned 2.2% during the month, buoyed by robust corporate earnings and upbeat retail sentiment, offering a tailwind to discretionary stock-pickers.
Meanwhile, quant-driven and systematic strategies struggled through much of July, weighed down by whipsaw price action across equities and macro assets. However, according to a Morgan Stanley note, with a late-month rally allowing quants to recoup approximately 30% of earlier losses.
Schonfeld Strategic Advisors, known for its strong quantitative teams, was down 0.3% in its flagship fund, with losses in quant and macro strategies partially offset by its fundamental equity unit, which gained 1.4% over the month.
The bifurcation highlights the resilience of multi-manager, multi-strategy platforms, which are better positioned to weather volatility through diversified alpha engines. In contrast, pure-play quant funds, such as Qube or Renaissance Technologies, are believed to have suffered steeper drawdowns, though specific figures remain unconfirmed.
Performance for Marshall Wace and other large players is still being confirmed, but early indications suggest a similarly cautious month for systematic-heavy allocations.
