As you may have been aware, especially if you’re a Kensington and Wellington survivor, 2008 was a tough one for Ken Griffin. The losing of 55% was pretty brutal, as was the 20 pounds of weight gained through stress eating. Things obviously perked up in 2009, including but not limited to Citadel’s returns, and KG’s ass. But standing in front of the mirror, stark naked and dripping wet, admiring himself from the back and suggesting that the reporter from Men’s Health describe what he saw as “two scoops of butter pecan ice cream” while minions dried him off with hundred dollar bills only brought K to the G so much pleasure. He wanted to do something really nice for himself, which is why he bought a house in Hawaii right next to Cher, bringing him one step closer to Karaoke Tuesday with one of his favorite icons. He was so excited about the whole thing, and he even had matching jumpsuits made. He deserved that kind of happiness and everyone loved seeing the anticipatory joy it brought to his eyes.
Citadel
November performance numbers are in.
Citadel Kensington Global Strategies Fund Ltd.:
November 2009: 0.50%
YTD: 57.89%
In early October of 2008, Ken Griffin and his partners-in-crime at the Chicago Mercantile Exchange had a dream. It was a dream of bringing “stability and transparency” to the credit-default swap market in such a way that would “reduce much of the systematic risk inherent” in those crazy derivatives.
That December, the CMDX clearinghouse/trading platform got the go ahead from the Commodity Futures Trading Commission. In March of this year, it received its final regulatory approvals.
And, if it’s lucky, for Hannukah, it may actually get to clear a trade or two.
But don’t fret my pets, this is a good thing. I told you last week after examining him in the flesh that Kenny-boy had visibly slimmed down and today Bloomberg corroborates the story (in a massive profile on the Citadel founder, and how, among other things, he’s hoping to turn RBC* into a firm that goes “head to head” with Goldman Sachs, though obviously this is the most important aspect). Last year was tough, okay? Kensington and Wellington were down, really bad, the wife’s fund was outperforming his, and, of course there was that damn poster, just sitting there, mocking him. Who wouldn’t stress eat through the pain? You’ve got the S&P making idle threats on your ass, you’ve got investors pussying out on you and the only thing that can provide comfort is that plate of nachos. And brownies next to it. But now? All good! The Big C is up, and you could bounce a quarter of KG’s ass.
“We knew we were going to survive,” Griffin says of his decision to start an investment bank, sitting in the firm’s New York office on the 48th floor of the Citigroup Center a year after Lehman’s collapse. Two rows of empty desks nearby await eight new employees set to start work on the sales and trading floor of Citadel Securities.
Griffin, who says he gained 20 pounds as his funds lost $9 billion in 2008 — he shed some of the weight as they rebounded 56 percent through September — was doing what he’s done throughout Citadel’s 19-year history: stepping in when others were fleeing.
Being indoctrinated into the $4 million crab claw club? Your guess is as good as mine. Wildly speculate away.
What’s this joyous news we hear? Our favorite midwestern hedge fund’s flagships were up were up for May (and year to date)? Indeed! Citadel’s Wellington and Kensington funds reportedly returned 6 percent last month, bringing the year’s total to 21 percent.
Earlier: Restrained Partying At The Griffin House Tonight
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