Wow. Did the hedge funds who handed data over to the PlusFunds group not have some sort of confidentiality agreement in place? Buying the database versus giving up your trading strategy to the database. It's like a contest between genius and genius in reverse.
Citadel Investment Group LLC, one of the U.S.'s largest hedge-fund groups, is looking to get a leg up on some of its competitors by securing access to a database that details their trading positions over a four-year period.
PlusFunds Group Inc., a bankrupt hedge-fund operator that supplied data for the now-defunct Standard & Poor's Hedge Fund Index, has asked for court permission to sell Citadel a non-exclusive license to its database of 40 hedge funds for $75,000.
If the request is granted next month, Citadel will be able to access the trading history of certain funds managed by hedge-fund groups that include Westport, Conn.-based Bridgewater Associates Inc., London-based GLG Partners LP and Madrid-based Vega Asset Management Management LLC.
Since the trading information is at least five months, and as much as four-and-a-half years, old, Citadel is unlikely to find much to trade upon, said a hedge-fund advisory executive. But it could give the Chicago-based firm valuable insight into competitors' trading methods and styles.
Citadel seeks access to hedge competitor trading data [MarketWatch]