Dec 21 (Reuters) - Hedge fund Citadel expects to return about $7 billion in profits to its clients in early January, the Wall Street Journal reported on Wednesday citing people familiar with the firm.

This year would mark what is expected to be Citadel's most profitable ever with its flagship fund gaining roughly 32% through November, the report added.

Citadel did not immediately respond to a Reuters request for comment on the matter.

While fears of interest rate hikes and the Russia-Ukraine war weighed on capital markets throughout 2022, leaving the benchmark S&P 500 down about 20%, hedge funds have weathered the downturn better than other financial firms.

Citadel, founded by billionaire investor Ken Griffin, is one of the world's most successful hedge funds. (Reporting by Manya Saini in Bengaluru; Editing by Shailesh Kuber)