Citadel down 47% YTD

If he is finished, he'll have finished with a boat load of money and that was always the plan so fair play.

How about those institutional investors who are held to very high standards of prudence so they can't take levereged bets on illiquid, complex assets. So they outsourced and invested in hedge funds like Citadel. That's within the rules, it's so insane.

Some big names like Mohamed El-Erian of PIMCO and others have marvelled at how long the hedge fund comp arrangement has continued.

The hedge fund model will not as we know it survive this massive debacle.
 
The key to any portfolio like theirs is, patient money.

If they don't panic and survive, they will probably easily double in value their portfolio, if not tripple over the coming two or three years.

If they were public, I would be on the bid.
 
Quote from ravenglass:

These guys are smart, the smartest of the lot they will regain their position as the worlds top traders.
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Yeah, remember some really really phucking smart guys in the late 90s. Nobel prize material smart. I wonder what happened to those mofos? :D :p
 
Citadel Seeks to Raise $500 Million by Opening Fund to New Cash
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By Katherine Burton

Dec. 5 (Bloomberg) -- Citadel Investment Group LLC is opening a $2 billion hedge fund to new cash from clients and plans to have it buy stocks from the firm’s two biggest funds, which have lost almost half their value this year.

The firm, run by Kenneth Griffin, hopes to raise as much as $500 million before the end of the year, according to a letter sent to investors. Clients will be allowed to put money in the Citadel Tactical Trading fund, whose returns exceeded 40 percent this year through November.

Citadel also told investors that the Tactical fund, whose returns are tied to the firm’s market-making business, will buy about half the stocks held by its Kensington and Wellington funds at market prices. Those funds, with $10 billion in assets, have fallen about 47 percent this year, the Chicago-based company’s worst since being founded in 1990.

“Citadel Kensington and Citadel Wellington will experience reduction in the risk associated with their portfolios and enhanced liquidity from the transfer of a substantial portion of the Global Equities portfolio,” the firm said in the letter, a copy of which was obtained by Bloomberg News. The sale will take place at the end of the year.

Griffin, 40, has posted just one losing year since starting the firm, dropping 4 percent in 1994.

“We continue to evolve the business to expand where we see opportunities and to scale back where the opportunity set is no longer as attractive,” Chief Operating Officer Gerald Beeson said in an interview today.

Citadel’s stock-picking team, with about 80 employees, has made money this year and will manage the equity positions of the Tactical Trading fund, the letter said.

Citadel told investors that returns of the Tactical Trading funds may decline as market volatility and trading volumes fall. Taking on the stock holdings “should create a second source of revenue,” the letter said.
 
Quote from JamesVU2000:

what a joke. I suspect this is whats going on at a lot funds. Taking bad assets out of certain funds and hiding them in other places.
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What would you do if you were Citadel? Throw in the towel?
 
when in trouble double, Citadel is very, very good from what I hear. I doubt they will go under, on a side note it would be nice to have a Van Gogh sitting in the living room. :)
 
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