Rob Citrone's macro hedge fund, Discovery Capital Management, achieved exceptional returns in 2023, significantly boosting his earnings compared to prominent billionaires like Bill Ackman (Trades, Portfolio) and Paul Singer (Trades, Portfolio). The fund, established 26 years ago, delivered a remarkable 52% net return last year, earning Citrone an estimated $730 million, primarily from his own holdings. This achievement placed him ninth on Bloomberg's annual list of highest-paid hedge fund founders, marking his debut on the list since its inception in 2019.
Despite managing a relatively small asset base of a few billion dollars, Citrone's performance stands out in an industry dominated by giants like Millennium Management's Izzy Englander and Citadel's Ken Griffin, whose firms manage over $60 billion each. Their flagship funds returned about 15%, yet their substantial personal investments in their funds ensure their continued presence on the list.
Discovery Capital, like many macro-oriented funds, experiences significant performance fluctuations, with two declines exceeding 20% since late 2018. However, a resurgence in market volatility has contributed to Citrone's best five-year period. In 2023 alone, the fund surged 48%.
A significant portion of Citrone's gains came from emerging markets, particularly Argentina. He was optimistic about the country's prospects under President Javier Milei and held substantial positions in Argentine government bonds and stocks. One of his key holdings, Grupo Financiero Galicia SA, soared 261% last year. Following its 2024 success, Discovery Capital now manages approximately $2.5 billion in assets.
