Navigating Volatility: How Citadel, ExodusPoint, and Schonfeld Thrived in April’s Turbulence

The markets in April 2025 were a rollercoaster, with President Trump’s tariff policies igniting a whirlwind of volatility. While the S&P 500 stumbled—falling 0.8% for the month and remaining down over 5% year-to-date—three multistrategy hedge funds, Citadel, ExodusPoint, and Schonfeld, defied the odds. Their tactical agility and diversified approaches not only shielded them from the downturn but also generated gains that underscored the value of adaptive investing in uncertain times.

Citadel: Diversification as Defense

Citadel’s flagship Wellington fund posted a 1.3% gain in April, lifting its YTD return to 0.5%. This rebound followed February and March losses, showcasing the firm’s ability to pivot during market turbulence. Specialized funds like its equities strategy, which gained 2.2% in April, and its global fixed income fund, up 1.2%, further highlighted the benefits of diversification. By blending fundamental equity analysis with quantitative strategies, Citadel’s tactical trading fund added 1.9% in April, pushing its YTD return to 3.2%.

ExodusPoint: Outperforming with Precision

ExodusPoint, managed by Michael Gelband, emerged as the standout performer in April. The fund surged 2.83% for the month, pushing its YTD return to 6.40%—a stark contrast to the broader market’s struggles. ExodusPoint’s success stemmed from its nimble navigation of tariff-driven volatility. When Trump’s April 2 tariff announcement triggered a 12% S&P 500 drop, the fund capitalized on the rebound, which saw the index rally 9.5% as tariffs were paused. This agility positioned ExodusPoint ahead of peers like Millennium, underscoring the advantages of real-time responsiveness.

Schonfeld: Steady Hands in Chaos

Schonfeld Strategic Partners, part of Schonfeld Strategic Advisors, delivered a 1.1% April gain, bringing its YTD return to 3.24%. The firm’s resilience, despite the market’s swings, reflects its cross-asset flexibility. Its performance aligns with broader trends among multistrategy funds, which leveraged sector-specific opportunities to weather uncertainty. Notably, Schonfeld’s consistency—surpassing 3% YTD by April—demonstrates how disciplined risk management can outperform in turbulent environments.

The Broader Market: Winners and Losers in Volatility

While multistrategy funds thrived, traditional stock pickers and trend-following strategies faltered. Commodity trading advisors (CTAs), which rely on algorithmic trend-following, suffered a 4.47% monthly loss—their worst since 1999—due to “whipsawed” algorithms in erratic markets. In sharp contrast, volatility-focused funds like 36 South gained 6% in April and 13% YTD by betting on market choppiness.

Conclusion: The Case for Multistrategy Flexibility

April 2025 revealed a clear divide between funds that adapted to volatility and those that succumbed to it. Citadel, ExodusPoint, and Schonfeld’s gains—6.4%, 3.2%, and 3.24% YTD respectively—contrast sharply with the S&P 500’s 5% YTD decline. Their success hinged on three pillars:
1. Sector Agnosticism: Diversifying across equities, fixed income, and tactical trades to exploit opportunities in all market conditions.
2. Real-Time Responsiveness: ExodusPoint’s leadership in capturing the S&P rebound after tariff pauses exemplified this.
3. Risk Management: Schonfeld’s steady performance highlighted the importance of disciplined risk controls.

The data is unequivocal: in macroeconomic uncertainty, multistrategy funds with cross-asset flexibility and tactical positioning outperform rigid, single-approach strategies. As geopolitical risks and policy-driven volatility persist, investors would be wise to prioritize funds that thrive in chaos—not just in calm seas.

The lesson for 2025? In turbulent markets, adaptability isn’t just an advantage—it’s a necessity.

Ask Aime: "Did Citadel, ExodusPoint, and Schonfeld hedge funds outperform the S&P 500 in April 2025's market turbulence?"