Citadel

His Citadel LLC returned more than 300 percent in a fund started as a high-frequency strategy in late 2007, according to two people familiar with the Chicago-based money manager. The $830 million pool, which added other strategies in recent years, beat the 44 percent gain of the U.S. stock market in the six years through 2013 as well as Griffin’s two main hedge funds, which together have $8.8 billion in assets and rose 45 percent in the period. [Bloomberg]

Another couple of bankers are making their way to a hedge fund. Bloomberg Businessweek has figured out why. Read more »

Did Stocks Lose Ground Last Month?

Ken Griffin hadn’t noticed. Read more »

Do people who are naturally intimidating become hedge fund managers or does becoming a hedge fund manager make one intimidating? Psychologists have long looked for an answer and while the data has so far been inconclusive, years of research have given us some insight into the varying intimidation tactics– innate or by design– used at firms across the nation. You’ve got your hedge fund manager who intimidates the good old-fashioned way: by screaming at his employees and calling them idiots. The one who uses “indirect methods to get his message across” to subordinates like “retreating to his office and placing and opposing trade” or using an intermediary to hold discussions with colleagues who are sitting two feet away. And, of course, the ones who publish employee handbooks with lines like “Ask yourself whether you have earned the right to have an opinion.” And then there are the ones who can do it with just one look, a pregnant pause, and unnerving negotiation of milk froth. Read more »

  • 12 Aug 2013 at 3:46 PM

E*Trade Has A Problem

It wants/needs to sell its market-making unit to appease regulators, but also needs to stop giving the unit quite so much business to appease regulators. Read more »

Richard Lee, the ex-SAC Capital trader who pleaded guilty to insider trading last week, was fired from a rival hedge fund over a bonus-boosting scheme that was uncovered his first day in a new job, The Post has learned. Lee was ousted from Ken Griffin’s $15 billion Citadel Investment Group in 2008 for fiddling with the trading books in a ploy to pump up his payout, sources said. What’s more, it happened during Lee’s first few hours as head of Citadel’s value special situation team, which focused on mergers, according to sources. Lee never made it to a second day. Citadel accused him of pulling profits from other trading groups to boost his own performance numbers, a source said. The 34-year-old Lee, a graduate of Brown University who lives on Chicago’s tony Gold Coast, had been promoted to head of the trading group after the former chief left in March 2008. Citadel has programs to track such changes and Lee was caught within “three hours,” sources said. In a statement, Citadel hinted at the reason for Lee’s firing, saying he “transferred positions” in such a way that it “would have impacted only his potential future compensation.” [NYP]

  • 24 May 2013 at 3:25 PM

Citadel Would Like The Fees It Wrongly Paid Back

We’re going to guess that the options exchanges being sued by Citadel and three other firms plan to dispute the following statement. Read more »