Big hedge funds defied the September downturn. Here’s how firms including Citadel, D.E. Shaw, and Millennium stack up

• The S&P 500 fell 4.9% in September, but multi-strategy funds still managed to post positive returns. 
• Hedge funds D.E. Shaw and Citadel led the way.
• Citadel continues to lead its rivals year to date, as its up nearly 13% for the year.

The stock market has been hot for most of this year, while hedge funds have struggled to keep pace. That dynamic has started to flip after a second straight month of declines in the S&P 500 and another bumper month for multistrategy hedge funds. 

Most managers tracked by Insider had positive returns in September, while the S&P 500 lost 4.9% as the prospect of higher-for-longer interest rates rattled markets. The S&P’s gains have now been trimmed to 11.7%, and at least one multi-strategy giant has now eclipsed the stock index. 

Ken Griffin’s $62 billion Citadel continues its outperformance, returning 1.7% in September in its flagship Wellington fund. Up 12.6% for 2023, it is still leading the pack this year, according to a person familiar with the figures.

D.E. Shaw had a strong month in its Composite fund, returning 2%. 

Here's how top multi-strategy players performed in September:

Representatives for the funds declined to comment.