Citadel Investment Group

From Wikipedia, the free encyclopedia

Citadel Investment Group is a $13.4 billion [1] hedge fund based in Chicago, Illinois, founded by billionaire trader Kenneth C. Griffin. It is one of the world's largest hedge funds. The firm's daily trading volume amounts to approximately 3% of daily trading activity in New York and Tokyo. The fund requires longer "lock-up" periods from investors than many other hedge funds. Though Citadel employs over 1,000 individuals globally, its flagship operation is located in Citadel Center, a $355 million office tower in downtown Chicago (in 2006 the tower was purchased for $560 million by Robert Gans) [2] [3]. Citadel also has offices in New York, Tokyo, Hong Kong, San Francisco, and London [4]. Of the 100 largest hedge funds, only Citadel is based in Chicago [5]. Citadel is the eleventh largest hedge fund in the world [5]; it is also the second largest multi-strategy hedge fund in the world [6].

Despite prior talk in Wall Street that Citadel was considering an IPO and Kenneth C. Griffin mentioning that possibility in an interview, in April 2006 a spokesman for Citadel said the firm currently has no such plans [7]. However, in November 2006 Citadel became the first hedge fund to publicly issue debt bonds. In an arrangement managed by Goldman Sachs and JP Morgan, Citadel announced it would sell $2 billion worth of notes. [8] The bonds have been given an investment-grade rating by Standard & Poor's. [9].

Contents

Citadel reportedly has a large stake in Google [10], Conor Medysystems [11], Alexion Pharmaceuticals [12], FirstFed Financial Corporation [13], uranium [14] (an $11 million stake in Cameco) [15], Dow Jones & Co., KB Home [16], Enzon Pharmaceuticals [17], K-V Pharmaceutical Company [18], the London Stock Exchange [15], and Banta Corporation [19]. In November 2002, Citadel invested $100 million in Xcel Energy [20]; in November 2006, Citadel agreed to invest $28 million in mining company China Shen Zhou [21].

In 2004, Citadel founded CIG Re, a Bermuda-based catastrophe reinsurer [22]. In 2005, the hedge fund founded a $500 million catastrophe reinsurer in Bermuda called New Castle Re [23].

Citadel also has multiple subsidiaries such as Kensington Global Strategies (Citadel's largest fund [24]), Wellington Partners [10] (Citadel's oldest fund and its flagship fund [25]), Citadel Equity Fund [26], Citadel Finance [1], and Citadel Derivatives Group, which controls 10% of the Philadelphia Stock Exchange [2]. In 2000, Citadel's Wellington affiliate achieved a 52.6% return [3]. Since January 2005, Citadel Derivatives Group has been a Lead Market Maker on the trading floor of the Pacific Coast Exchange [4]. In a strategic partnership with about ten other financial institutions, Citadel Derivatives Group is also a joint owner of the International Securities Exchange [5].

In 2006, Citadel and JP Morgan Chase became white knights after taking over the energy division of Amaranth Advisors, which had suffered a 65% ($6 billion) loss in assets [6] [7].

Citadel's daily trading activity reportedly accounts for "more than 10% of daily U.S. listed equity options contract volume" [8].

Citadel Investment Group is not related to Citadel Investment Services, a South Africa-based wealth management group, or Citadel Group, a global financial services firm. Two other firms, New York based mortgage broker Citadel Investments and Chicago based Citadel Group, a healthcare financing organization, are unrelated to the hedge fund or its affiliates.

  1. ^ Bloomberg News. "Citadel fund among best in '06", Chicago tribune, 2001 January 5. Retrieved on 2006-01-27.
  2. ^ Carr, Robert. "Citadel Center Trades in $560M Transaction", globest, 2006 October 27. Retrieved on 2006-01-27.
  3. ^ "Dearborn Center Announces 206,146 Square Foot Lease with Citadel", Beitler RE Corp, 2001 March 9. Retrieved on 2006-01-27.
  4. ^ "Harbin Electric Closes $50.0 Million Financing", Harbin Electric, 2006 August 31. Retrieved on 2006-01-27.
  5. ^ a b Rose-Smith, Imogen. "Land of the Giants", Alpha magazine, 2006 2006, pp. 3. Retrieved on 2006-01-27.
  6. ^ Hutchins, william. "Citadel leads the way in financial self-sufficiency", Financial Times, 2006 December 8. Retrieved on 2006-01-27.
  7. ^ Reuters. "Citadel Investments to stay private", Crain's, 2005 April 29. Retrieved on 2006-01-27.
  8. ^ Reuters. "Citadel to sell up to $2 billion in debt", Crain's, 2006 November 28. Retrieved on 2006-01-27.
  9. ^ Anderson, Jenny. "INSIDER; Some Hedge Funds Decide That Relying on Banks Is Just Too Risky", The New York Times, 2006 December 1. Retrieved on 2006-01-27.
  10. ^ a b Mannes, George. "Citadel Storms Into Google", thestreet.com, 2004 November 15. Retrieved on 2006-01-27.
  11. ^ "Citadel Boosts Stake in Conor Medsystems (CONR) to 5%", thestreetinsider, 2006 September 28. Retrieved on 2006-01-28.
  12. ^ "Citadel LP Raises Stake in Alexion Pharmaceuticals (ALXN) to 5%", thestreetinsider, 2006 October 12. Retrieved on 2006-01-28.
  13. ^ "Citadel LP Discloses 5.3% Stake in FirstFed Financial (FED)", thestreetinsider, 2006 November 2. Retrieved on 2006-01-28.
  14. ^ Nones, Jones. "Is uranium the new investment of choice for hedge funds?", Resource Investor, 2006 November 6. Retrieved on 2006-01-28.
  15. ^ a b Evans, Gavin, Christopher Donville. "Uranium, Energy Choice of Tudor, Adit, to Beat Oil, Metals", Bloomberg, 2006 November 6. Retrieved on 2006-01-28.
  16. ^ "Smart Money Flexes Muscles in Battleground Homebuilder Stocks", findprofit, 2005 October 13. Retrieved on 2006-01-28.
  17. ^ "Citadel LP Accumulates 5.4% Stake in Enzon Pharmaceuticals (ENZN", thestreetinsider, 2006 November 15. Retrieved on 2006-01-28.
  18. ^ "Citadel LP Raises Stake in K-V Pharmaceutical (KV.a) to 5.5%", thestreetinsider, 2006 November 15. Retrieved on 2006-01-28.
  19. ^ "Citadel Buys Banta Shares", Graphic Arts monthly, 2006 August 23. Retrieved on 2006-01-28.
  20. ^ Wieffering, Eric. ""xcel")&p_perpage=10&p_sort=YMD_date:D&xcal_useweights=no Borrowing costs jump for Xcel", Star Tribune, 2002 November 13, pp. 1D. Retrieved on 2006-01-28.
  21. ^ "China Shen Zhou Mining & Resources Signed a $28.0 Million Financing", secinfo, 2006 November 22. Retrieved on 2006-01-28.
  22. ^ Zuill, Lilla. "Hedge fund investments in reinsurance broaden", The Royal Gazette, 2005 August 22. Retrieved on 2006-01-28.
  23. ^ finanzanch. "Citadel forms catastrophe reinsurer New Castle Re - AM Best", AFX & marketwatch, 2005 April 11. Retrieved on 2006-01-28.
  24. ^ Toomre, Lars. "Citadel Investment Group Off to Flying 2006 Start", Toomre Capital, 2006 March 13. Retrieved on 2006-01-28.
  25. ^ Maday, Tom. "Meet Ken Griffin", Cover Story, Institutonal Investor, 2001 September. Retrieved on 2006-01-28.
  26. ^ Morgan Lewis (2004 October 14). Court halts investor squeeze out by DEPFA Deutsche Pfandbriefbank AG. Press release. Retrieved on 2006-01-28.

Retrieved from "http://en.wikipedia.org../../../c/i/t/Citadel_Investment_Group_5644.html"
Advanced Search
Included Web Search Engines


Safe Search

close

Top Matching Results

Occasionally Search.com will highlight specialized results that are based on the context of your query. Examples of specialized results include specific links to news, images, or video.

Top Matching Results may highlight information from other Search.com pages, content from the CNET Network of sites, or third party content. The listings are based purely on relevance. Search.com does not receive payment for listings in this section but our partners that provide this data may get paid for listing these products.

Sponsored Links

This section contains paid listings which have been purchased by companies that want to have their sites appear for specific search terms and related content. These listings are administered, sorted and maintained by a third party and are not endorsed by Search.com.

Search Results

Search.com sends your search query to several search engines at one time and integrates the results into one list which has been sorted by relevance using Search.com's proprietary algorithm. You can customize the list of search engines included in your metasearch from the preferences.

The search engines that are used in your metasearch may allow companies to pay to have their Web sites included within the results. To view the Paid Inclusion policy for a specific search engine, please visit their Web site. Search.com does not accept payment or share revenue with any search engine partner for listings in this section.