Ending the year on a strong note, Citadel Investment Group LLC gained 30 percent in a volatile market in 2007, and the Chicago-based hedge fund has reached $20 billion in assets, according to a source familiar with the company's results.
In contrast, the Dow Jones industrial average ended up 6.4 percent for 2007.
In 2006, Citadel also topped 30 percent, helped by energy bets after it took over some assets from Amaranth Advisors LLC, which imploded in September 2006.
That deal has continued to pay off in 2007, and Citadel has continued to make opportunistic purchases of distressed assets.
In November, Citadel said it was sinking about $2.5 billion into E-Trade Financial Corp., which has been hurt by shaky mortgage investments, largely because it is a fan of the online discount brokerage's business model.
In August, Citadel bought assets controlled by Sentinel Management Group Inc. after the Northbrook-based cash-management company froze client withdrawals.
In July, Citadel, whose assets under management grew to $20 billion from $16 billion in 2006, took control of the remnants of Sowood Capital Management LP after the firm's two hedge funds lost more than 50 percent of their assets in the summer's market upheaval.
And in June, Citadel paid $24 million in a bankruptcy auction for assets of subprime lender ResMae Mortgage Corp.
http://www.chicagotribune.com/business/chi-080103citadel,0,4833460.story
In contrast, the Dow Jones industrial average ended up 6.4 percent for 2007.
In 2006, Citadel also topped 30 percent, helped by energy bets after it took over some assets from Amaranth Advisors LLC, which imploded in September 2006.
That deal has continued to pay off in 2007, and Citadel has continued to make opportunistic purchases of distressed assets.
In November, Citadel said it was sinking about $2.5 billion into E-Trade Financial Corp., which has been hurt by shaky mortgage investments, largely because it is a fan of the online discount brokerage's business model.
In August, Citadel bought assets controlled by Sentinel Management Group Inc. after the Northbrook-based cash-management company froze client withdrawals.
In July, Citadel, whose assets under management grew to $20 billion from $16 billion in 2006, took control of the remnants of Sowood Capital Management LP after the firm's two hedge funds lost more than 50 percent of their assets in the summer's market upheaval.
And in June, Citadel paid $24 million in a bankruptcy auction for assets of subprime lender ResMae Mortgage Corp.
http://www.chicagotribune.com/business/chi-080103citadel,0,4833460.story
