Key Takeaways
- • Citadel's flagship Wellington fund gained 1.9% in February, with positive returns across all five core strategies (fundamental equity, quantitative investing, commodities, fixed income/macro, and credit/convertibles), bringing year-to-date returns to 2.9% on $66 billion in assets under management.
- • ExodusPoint Capital Management, led by Michael Gelband, advanced 0.9% in February following a record 2025, now up 2.6% year-to-date, demonstrating resilience in a volatile market environment.
- • Asia-focused multistrategy funds significantly outperformed broader markets in February: Dymon Asia Capital gained nearly 5% (10%+ YTD on ~$6 billion AUM), while Pinpoint Asset Management is up 6.6% year-to-date in its flagship fund.
- • Major hedge funds delivered positive February returns despite S&P 500 declines, driven by software sector weakness linked to artificial intelligence developments and broader equity market volatility that pressured names like Salesforce.
- • Geopolitical escalation, including weekend strikes on Iran by the United States and Israel, triggered oil price spikes and sharp Monday equity declines, signaling continued market volatility into March 2026.
Summary
Citadel demonstrated broad-based strength in February 2026, with Ken Griffin's flagship Wellington fund posting a 1.9% monthly gain across all five primary strategies. The fund's diversified approach—spanning fundamental equity, quantitative investing, commodities, fixed income/macro, and credit/convertibles—generated returns despite challenging market conditions, lifting Citadel's year-to-date performance to 2.9%. The firm's tactical trading fund, which blends discretionary stock picking with systematic equity strategies, gained 1.5% in February. With $66 billion in assets under management at the start of the month, Citadel's consistent performance across multiple strategies underscores the resilience of diversified, multi-asset approaches in volatile periods.
ExodusPoint Capital Management, led by Michael Gelband, posted a 0.9% gain in February, bringing its year-to-date return to 2.6%. The fund's performance follows a record-breaking 2025, demonstrating sustained momentum despite market headwinds. This performance reinforces ExodusPoint's positioning as a disciplined multi-strategy operator capable of delivering steady returns across market regimes.
Asia-focused multistrategy funds significantly outpaced broader market performance during February. Dymon Asia Capital, managing approximately $6 billion, gained nearly 5% for the month, pushing its year-to-date returns above 10%. Pinpoint Asset Management's flagship fund is up 6.6% year-to-date, highlighting the region's opportunity set and the tactical advantage of Asia-focused positioning during this period.
Hedge fund outperformance occurred against a backdrop of equity market weakness. The S&P 500 declined during February as a broad-based sell-off in software stocks, triggered by new developments in artificial intelligence, weighed on major names including Salesforce. This sector-specific dislocation created opportunities for skilled managers employing both long and short strategies. Volatility intensified into March following weekend military strikes on Iran by the United States and Israel, which spiked oil prices while triggering sharp equity declines on Monday, signaling continued macroeconomic uncertainty ahead.
ExodusPoint Capital Management, led by Michael Gelband, posted a 0.9% gain in February, bringing its year-to-date return to 2.6%. The fund's performance follows a record-breaking 2025, demonstrating sustained momentum despite market headwinds. This performance reinforces ExodusPoint's positioning as a disciplined multi-strategy operator capable of delivering steady returns across market regimes.
Asia-focused multistrategy funds significantly outpaced broader market performance during February. Dymon Asia Capital, managing approximately $6 billion, gained nearly 5% for the month, pushing its year-to-date returns above 10%. Pinpoint Asset Management's flagship fund is up 6.6% year-to-date, highlighting the region's opportunity set and the tactical advantage of Asia-focused positioning during this period.
Hedge fund outperformance occurred against a backdrop of equity market weakness. The S&P 500 declined during February as a broad-based sell-off in software stocks, triggered by new developments in artificial intelligence, weighed on major names including Salesforce. This sector-specific dislocation created opportunities for skilled managers employing both long and short strategies. Volatility intensified into March following weekend military strikes on Iran by the United States and Israel, which spiked oil prices while triggering sharp equity declines on Monday, signaling continued macroeconomic uncertainty ahead.
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