3:29: Hold music. Hopefully I won't get mysteriously kicked off.
3:34: Now operator is saying we'll be starting in "approximately ten minutes."
3:41: The hold music is some techno-y, New Age stuff.
3:43: The conference will begin "shortly." Now the music kind of sounds like what you'd hear in a Sharper Image.
3:46: Radio silence
3:48: Gerald Beeson, Chief Operating Officer, starts call.
3:50: Kenny in the house
-Grateful to be surrounded by incredible team
-gives the mic back to Beeson
3:51: we have seen the near collapse of the world's banking system. we wont go into the details. we're going to talk about how Citadel has weathered the storm.Wellington Kensington down 35% ytd as of last Friday.
3:54: Dollars losses sustained in 4 weeks following LEH's bankruptcy
3:55 We've seen the importance of diverse counterparties
3:57: The firm's liquidity remains strong with more than 30 percent of investment capital held in cash.
3:58: Significant capacity in lines that have NOT been utilized. As of today, 8 bn of undrawn capacity in tri-party lines.
3:59: "some of the principles we've had around what has commercially acceptable, as we move forward, will not be acceptable
clearing houses will be much more important in the trading of over the counter derivatives.
counterparty credit exposure has not been apart of our losses; losses were due to dislocation."
4:00 Ken takes mic
-Dislocations will create tremendous opportunity
-"incredibly excited about the portfolio we own"
-as TARP and other programs come to bear, stresses will correct themselves
-Never seen a market as full of panic as the last several weeks
-the banking system will be forever different
-redemptions at yearend are modest
-couldn't ask for a better team to weather the storm
- #1 trader of listed options it the US
- very proud of team for providing liquidity
- with respect to W and K, everyone knows what we need to do: make good investment decisions and deploy thought capital
- Looks forward to 2009 being a good year.
Questions from Note Holders