Citadel plans to return about $5 billion in profits earned in 2025 back to investors at the beginning of next year, according to a person familiar with the matter.
The firm’s flagship multistrategy fund, known as Wellington, gained 9.3% in the year through last week, the person said, who asked not to be named discussing performance details.
The profit being returned is not all that was generated in 2025, the person said, but rather, a way of constraining capital to better match what the firm sees as the opportunity set going into the new year. As such, Citadel will start 2026 with $67 billion in assets, down from the $72 billion it currently manages, the person said.
A spokesperson for Citadel declined to comment.
The firm does not opt for profit distributions every year, but since 2017 (and including what’s expected to be given back this year), Citadel has returned $32 billion in profit to its investors.
Citadel has been ranked the most profitable hedge fund based on net gains since inception, according to LCH Investments. Through 2024, Citadel has generated $83 billion in net gains since it was founded in 1990. It is anticipated that number will jump to more than $88 billion when the new rankings come out in January.