Citadel is preparing to return around $5 billion in profits earned during 2025 to its investors at the beginning of next year, according to a source acquainted with the matter.
The firm's flagship multistrategy fund, Wellington, has achieved a 9.3% gain through the past week of the year, noted the source, who wished to remain anonymous while discussing performance details.
The payout does not encompass all the profits generated in 2025. Instead, it's a strategic decision by Citadel to better align its capital with the anticipated opportunities in the coming year. Consequently, Citadel's assets will decrease to $67 billion at the start of 2026 from the current $72 billion, the source added.
Citadel's spokesperson declined to comment on the matter.
While Citadel doesn't distribute profits every year, since 2017, and including the expected returns this year, the firm has distributed $32 billion back to investors.
As per LCH Investments, Citadel is ranked as the most profitable hedge fund based on net gains since its inception. By the end of 2024, Citadel had amassed $83 billion in net gains since its founding in 1990, with expectations that this figure will climb to over $88 billion when new rankings are released in January.