Multi-strategy major Citadel’s Global Fixed Income fund posted a sharp decline in March, falling 8.2% amid heightened volatility driven by escalating conflict in the Middle East, according to a report by Bloomberg.
The report cites unnamed sources familiar with the figures as highlighting that the drop marks the weakest performance among the firm’s core strategies and leaves the fund down 5.5% for the year to date.
Losses accelerated during the month. The strategy fell by 4.75% in the opening week of March, with drawdowns deepening to roughly 8% by 20 March as market conditions deteriorated.
Other parts of Citadel’s multi-strategy platform proved more resilient. The flagship Wellington fund declined 1.9% over the month, trimming its year-to-date gain to 1%. Meanwhile, the firm’s Equities and Tactical Trading strategies both delivered positive returns, with Tactical Trading extending its gains for the year to 5.3%.
The challenging environment was not limited to one firm. ExodusPoint Capital Management, another manager with significant exposure to fixed income, reportedly lost 4.5% in March.
Market turbulence was largely driven by geopolitical developments. The intensifying conflict involving Iran disrupted oil supplies from the Middle East, triggering a surge in energy prices and fuelling inflation concerns. As a result, global bond markets came under pressure, with investors demanding higher yields and scaling back expectations for interest rate cuts by the Federal Reserve.
Reflecting these dynamics, Bloomberg’s Global Aggregate bond index declined 3.1% during March, marking its steepest monthly fall in over a year.
A spokesperson for Citadel reportedly declined to comment on the performance.
