CNBC’s David Faber reports that our favorite Chicago firm is apparently approaching fund of funds and other hedge fund investors, asking them to take their cash out of whatever money pit it happens to be languishing in at the moment, and hand it over to Citadel. In exchange, KG will give them their old high water mark.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Do I hear a DB “bake sale” with proceeds going to the C ?
what exactly does this mean??
2, don’t get bogged down in the details, but this is not a positive development.
It means they need the mgmt fees so bad just to keep the lights on they are forgoing carry in the short-term on the new money
wow, how to not make friends and not influence people. first poach people, then poach funds?!
@3 & 5,
Sooo funny, soooo true.
But is my short term debt going to be okay?
They should host a conference call to comfort their investors.
GS getting hammered again today – anybody have any guesses about what is going on there?
@7
No, you’ll be screwed. Please be mentally prepared.
this is #2 again still don’t get it.
@9, after the GS/Citi news hit the tape, everyone started speculating again that they are still looking for a sugar daddy because they are in a lot of hurt. Now that the Japanese are out of the picture and the SWF’s are screwed themselves, their only bid left is from the likes of HSBC and a couple of other banks that are barely standing on one leg.
GS is fine you naysayers are jealous of the ONLY guys left standing.
@2- citadel is asking people who are invested in other funds to pull that money and put it in citadel.
GS is fine you naysayers are jealous of the ONLY guys left standing.
12 If it comes to that, wont Paulson et al be their sugar daddy?
You know who has a totally sweet money pit? Scrooge McDuck.
#2 here ty for all the educational commentary.
2 11 You need to google “high water mark”. It will then become clear.
@13:
Put down the kool-aid, your tongue is sickeningly light blue
@ 15
Is that why it’s just coming out today that GS approached Citi because they wanted to discuss a potential “merger” (read: please buy us).
@11. I’m trying to think of a good analogy.
It’s like the not-so-good looking girl trying to lure away the boyfriends of all the other girls by offering to fuck them in the back of her Honda after school.
But she also has AIDs.
Kenny G is the girl.
why make trillions when you can make… billions?
why make trillions when you can make… millions?
@23 Kenny G has the HIV?
Citadel is basically offering a discount for investors – reminds me of auto dealership commercials that tout lower prices because they’ve got to move last year’s models off the floor.
Kenny G clearly doesn’t feel he’s been getting enough hate mail.
@26 metaphorically speaking, maybe more like the syph.
Why make basis points when you can make basis?
I heart 2008
Getting the syph instead of AIDS is the new killing it.
I don’t see the reason for all the hate for Citadel around here. Do you know how many of their clients they have made into millionaires? Nearly ALL of their billionaires. Think about it.
Don’t forget to bring a towel.
People used to start rumors about the company where I worked. It goes with the territory when you’re better than everyone else.
Is there is a reason Danny Boy Harrison didn’t post Opening Bell? Not even a sick note?
What’s he doing? Whacking off into a barrel of oil?
#32….well played sir!!!
this is the hedge fund equivalent of dollar cost averaging
@32: Damn you – you made coffee come out my nose.
#34 is either bear or leh. HA!
@34 made exactly the same comment all last week anytime a rumor about citadel came up.
@34 get some NEW material!
“old high water mark”
the investors’ at Citadel or at the HFs from which he hopes to pull the funds?
doesn’t matter, does it?
@41-it’s the high water mark that applied at their old funds.
WTF was up with that conference call on Friday then?
JP Morgan will be next to fall…. you heard it hear first
Cannibalization is always a good sign.
@41- the post referred to potential investors currently invested at other funds. where the fuck do you get current ‘investors’s at citadel’?
@41- it’s the high water mark that applied at their old hf, intard.
@41:
Walk me through how a non-Citadel LP in the process of claiming a redemption for the currency-suck that was once the hottest new fund to hit the FedEx van have a measured high-water mark at Citadel?
hm, that’s interesting. how does the client moving their funds prove to citadel what the loss was at the former HF?
also, if people take them up on it, wouldn’t this give citadel insight into the performance of other funds? could be useful info
I had ten gazillion at Tiger and I’m taking ‘em up on it!
@ 13,if “standing” means “bank holding co” then cut my legs off at the knees. GS & MS are now with BAC, C and JPM. Wall Street died with Lehman.
Make sure you keep those depositers happy…
@ 13,if “standing” means “bank holding co” then cut my legs off at the knees. GS & MS are now with BAC, C and JPM. Wall Street died with Lehman.
Make sure you keep those depositers happy…
Summation:
Citadel to current Citadel Investors (who are either FOF or HF): “If you have any extra cash laying around anywhere else, take out of money fund/sweeps, and put it with us. Added bonus = we’ll only make you pay mgt fees on your old amt!”
Just calling for more capital from investors who are currently asset mgrs themselves and who have unallocated cash.
Summation:
Citadel to current Citadel Investors (who are either FOF or HF): “If you have any extra cash laying around anywhere else, take out of money fund/sweeps, and put it with us. Added bonus = we’ll only make you pay mgt fees on your old amt!”
Just calling for more capital from investors who are currently asset mgrs themselves and who have unallocated cash.
#34 here….no, assholes, I worked for Mirant.
I’m #41 – get a grip, some of you. I was just trying to add a bit of levity (“does it matter?” might have been a clue?)
Faber in his spiel says the HW at old HF. As some have pointed out, how to prove? If Kenny had been approaching FOFs and other investors in Citadel, he could have been referring to the # at least 37% down from BOY for those in since then. I.e., give me more of your money, yes I’ve lost a lot of it already, but so have others. I can at least earn back what I have lost and more (or is he saying he’ll give some investors a HW 90% above their valuation at a dog? – now that’s real desperation.) My guess is that Faber got it wrong as he is wont to do, but again, does it matter?
hah, here comes 56 to backpeddle. “oh, i was just kidding”
Mr. Gendell. Please redeem my holdings and wire any remaining funds(if applicable) to: JP Morgan Chase, ABA Number 021000021, Account Name – Citadel Kensington Global…
Mr. Gendell. Please redeem my holdings and wire any remaining funds(if applicable) to: JP Morgan Chase, ABA Number 021000021, Account Name – Citadel Kensington Global…
#41 here
Oh, 57, you hurt my feelings! sniff, sniff…
Oh, 57, you hurt my feelings!
sniff, sniff…
#41 here