- Candlestick Capital, launched by ex-Citadel PM Jack Woodruff with about $2.1B AUM, is closing after underperforming his own high return standards.
- The shutdown reflects broader industry pressure on single-strategy hedge funds amid consolidation favoring large multi-strategy firms.
In a move that highlights the ongoing challenges facing single-manager hedge funds, Jack Woodruff, a longtime Citadel portfolio manager, has announced he is shutting down his firm, Candlestick Capital Management, which he launched back in 2019.
Woodruff, who spent nearly nine years at Ken Griffin’s Citadel—where he rose to become a partner and led a major consumer-focused equities team—took about 15 colleagues with him when he struck out on his own.
The launch was one of the notable ones that year, starting with roughly $2 billion in commitments, including seed money from Citadel itself (though the firm is no longer an investor).
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Candlestick specialized in consumer-oriented stocks, running a long/short equity strategy that aimed to capitalize on deep fundamental research in sectors like discretionary and staples.
A Strong Start, Then Mixed Results
The fund got off to a flying start in its early years, according to Bloomberg.
In 2020, amid the pandemic volatility, Candlestick posted a 36.5% return. That was followed by 14.9% in 2021.
But 2022 brought a sharp setback with a -15% loss, as many equity hedge funds struggled in a tough market.
The firm bounced back modestly with 8.1% in 2023 and a solid 28.1% gain in 2024.
This year, however, has been tougher: Candlestick was down about 7% through October, putting it in “single digits” negative territory for 2025 overall.
For context, stocks-focused hedge funds as a group were up 16.7% through November, according to Bloomberg data.
The firm was managing around $2.1 billion in assets at the time of the decision.
Woodruff’s Own Words on the Closure
In a letter to investors, Woodruff was candid about why he chose to pull the plug.
“Our returns, while good, have not met my own extremely high standards,” he wrote.
He reminded investors of a promise he’d made from day one:
“I was upfront with our investors from the beginning that if we were not generating industry-leading returns, we would return your capital. That time has come.”
Woodruff added that the firm plans to return a substantial portion of investor capital by the end of the year.
A representative for Candlestick declined to comment further when approached.
Part of a Broader Trend in Hedge Funds
This closure comes against a backdrop of consolidation in the hedge fund world.
Giant multi-strategy firms—like Citadel, Millennium, and others—have been dominating, attracting the most talent and capital with their platforms.
Single-strategy shops, especially those focused on one sector or style, have found it harder to stand out, raise new money, or retain top people.
According to Hedge Fund Research data cited in reports, more than 2,800 hedge funds have shut down since the start of 2020—outpacing the number of new launches.
Woodruff isn’t the first Citadel alum to face these headwinds after going independent, but his track record and the fund’s performance made Candlestick one of the more watched spin-offs.
What’s next for Woodruff remains unclear—he hasn’t commented publicly beyond the letter—but I’m curious to know your thoughts.
Was the closure this simple or is there more we’re not being told?
Also Read: Short Sellers Are Now Throwing One Another Under the Bus
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