Finance

Ken Griffin’s Wellington hedge fund ekes out 1% gain in August

Published

9 months ago

September 4, 2024

Ken Griffin, Founder and CEO, Citadel speaks at the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024.

David Swanson | Reuters

Billionaire investor Ken Griffin’s suite of hedge funds at Citadel eked out small gains in what proved a volatile month in August as markets grappled with an emerging growth scare.

Citadel’s multistrategy Wellington fund gained about 1% in August, bringing its year-to-date return to 9.9%, according to a person familiar with the returns, who spoke anonymously because the performance numbers are private. All five strategies used in the flagship fund — commodities, equities, fixed income, credit and quantitative — were positive for the month, the person said.

The Miami-based firm’s tactical trading fund rose 1.5% last month and is up 14.5% on the year. Its equities fund, which uses a long/short strategy, edged up 0.8%, pushing its 2024 returns to 9.3%.

Citadel declined to comment. The hedge fund complex had about $63 billion in assets under management as of August 1.

Volatility made a strong comeback in August as fears of a recession were rekindled by a weak July jobs report. On August 5, the S&P 500 dropped 3%, its worst day since September 2022. Still, the market quickly bounced back, with the equity benchmark ending August up 2.3%. The S&P 500 is now ahead more than 15% in 2024.

Overall, the hedge fund community recently moved into a defensive mode as macroeconomic uncertainty mounted. Hedge funds on net sold global equities for a seventh straight week recently, driven by sales of communication services, financial and consumer staples stocks, according to Goldman Sachs’ prime brokerage data.

Finance

Stocks making the biggest moves midday: WBD, MODG, SATS, AAPL

Published

1 hour ago

June 9, 2025

Business Finance News

Finance

Walmart taps own fintech firm for credit cards after Capital One exit

Published

2 hours ago

June 9, 2025

Business Finance News

A Capital One Walmart credit card sign is seen at a store in Mountain View, California, United States on Tuesday, November 19, 2019.

Yichuan Cao | Nurphoto | Getty Images

Walmart‘s majority-owned fintech startup OnePay said Monday it was launching a pair of new credit cards for customers of the world’s biggest retailer.

OnePay is partnering with Synchrony, a major behind-the-scenes player in retail cards, which will issue the cards and handle underwriting decisions starting in the fall, the companies said.

OnePay, which was created by Walmart in 2021 with venture firm Ribbit Capital, will handle the customer experience for the card program through its mobile app.

Walmart had leaned on Capital One as the exclusive provider of its credit cards since 2018, but sued the bank in 2023 so that it could exit the relationship years ahead of schedule. At the time, Capital One accused Walmart of seeking to end its partnership so that it could move transactions to OnePay.

The Walmart card program had 10 million customers and roughly $8.5 billion in loans outstanding last year, when the partnership with Capital One ended, according to Fitch Ratings.

For Walmart and its fintech firm, the arrangement shows that, in seeking to quickly scale up in financial services, OnePay is opting to partner with established players rather than going it alone.

In March, OnePay announced that it was tapping Swedish fintech firm Klarna to handle buy now, pay later loans at the retailer, even after testing its own installment loan program.

One-stop shop

In its quest to become a one-stop shop for Americans underserved by traditional banks, OnePay has methodically built out its offerings, which now include debit cards, high-yield savings accounts and a digital wallet with peer-to-peer payments.

OnePay is rolling out two options: a general-purpose credit card that can be used anywhere Mastercard is accepted and a store card that will only allow Walmart purchases.

Customers whose credit profiles don’t allow them to qualify for the general-purpose card will be offered the store card, according to a person with knowledge of the program.

OnePay didn’t yet disclose the rewards expected with the cards, though the general-purpose card is expected to provide a stronger value, said this person, who declined to be identified speaking ahead of the product’s release. The Synchrony partnership was reported earlier by Bloomberg.

“Our goal with this credit card program is to deliver an experience for consumers that’s transparent, rewarding, and easy to use,” OnePay CEO Omer Ismail said in the Monday release.

“We’re excited to be partnering with Synchrony to launch a program at Walmart that checks each of those boxes and will help serve millions of people,” Ismail said.