Citadel plans to return approximately $5 billion in profits earned during 2025 to its investors at the start of next year, according to a source familiar with the situation.
The firm's flagship multistrategy fund, Wellington, has seen a 9.3% increase in the year up to last week, as stated by the source who requested anonymity due to the sensitivity of discussing performance details.
The funds being returned do not encompass all the profits generated in 2025. Instead, the move represents a strategic decision to limit capital and align with the opportunities anticipated in the coming year. Consequently, Citadel will begin 2026 managing $67 billion in assets, a reduction from its current $72 billion, according to the source.
A Citadel spokesperson declined to provide a comment.
While Citadel does not always distribute profits annually, it has returned $32 billion to its investors since 2017, including the expected distribution this year.
LCH Investments has ranked Citadel as the most profitable hedge fund based on net gains since its inception. Through 2024, Citadel has accrued $83 billion in net gains since its founding in 1990, with projections suggesting this figure will exceed $88 billion when new rankings are released in January.