Citadel delivered a 1.7% gain in October as the firm expands its use of data analytics to evaluate portfolio manager performance and investment costs, according to a report by eFinancialCareers.

The gain contrasts with losses across much of the hedge fund industry as technology equity selloffs and fixed income volatility disrupted trading strategies.

Citadel has also been strengthening its people analytics capabilities, led by David Carlin, a former McKinsey partner who joined in 2024. The firm appointed fellow McKinsey alumnus Keith McNulty as head of assessments in January and hired Kevin Navikas in September to oversee people analytics for its New York fixed income business.

The expansion reflects growing emphasis among multistrategy hedge funds on evaluating investment performance beyond headline profit and loss figures. According to Richard Averill, founder of compensation analytics firm Waterline Economics, managers are increasingly assessed on the costs associated with generating returns, including prime brokerage fees, market data expenses and staffing costs.

The approach comes as multistrategy platforms face pressure to manage leverage, control operational expenses and allocate capital efficiently amid volatile markets. While Citadel has experienced some departures from its London macro business, the firm's positive October performance highlights its relative resilience during a challenging period for the wider industry.

The increased focus on performance analytics also underscores how hedge funds are refining portfolio manager evaluation and compensation frameworks, placing greater weight on the efficiency and sustainability of investment returns rather than absolute trading profits alone.