Citadel's clients retain profits despite elective distribution offer

Investing.com -- Citadel, the multistrategy hedge fund, recently offered its clients an opportunity to cash out their profits following a successful year. However, a significant majority of these clients chose to keep their earnings within the fund, according to a Bloomberg source familiar with the situation.

Last year, Citadel's flagship strategy saw an approximate gain of 15%, leading to billions of dollars in profits. The firm, which manages $66 billion of assets, then presented its clients with the option of cashing out these earnings. Despite this offer, only around $300 million is set to leave the firm, as reported by the person, who requested anonymity due to the private nature of the details.

This elective profit distribution offer is a departure from Citadel's recent practices. In the past years, the firm mandated its investors to redeem their profits rather than providing an option. It's worth noting that Citadel had previously given clients the choice to redeem profits, but this practice has not been implemented in recent years.

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Source: Investing.com