Citadel is a global financial institution that was founded by Ken Griffin in 1990. The company runs two businesses, which are asset management and securities. Citadel has more than $26 billion in asset value under its management. It also has trading products, which include equities and equity options. It also offers interest rate swaps for both retail and institutional clients.
Citadel is one among the only 3 percent of hedge fund companies that have survived for more than 20 years. The company has been recognized for its outstanding investment performance and managing assets of the largest institutional investors in the world.
It manages pensions, sovereign wealth funds, as well as university endowments. Citadel is headquartered in Chicago and has offices in Europe, Asia, and North America. Citadel manages funds in different investment strategies, which range from equities, commodities, quantitative strategies, fixed income, to credit.
It is known to possess the state-of-the-art technology to help in investment performance. The company does in-depth fundamental research and has strong risk management structure. Today, it is ranked as the 11th largest global hedge fund manager. It is also the 2nd largest multi-strategy hedge fund manager in the world.
In 2011, the company capped off two years from its funds with solid returns obtained from 2009 and 2010 where it crossed the high water marks by recording more than 20 percent gains. It outperformed the industry’s average of 5 percent loss.
Citadel helped Kensington and Wellington to post returns amounting to 25 percent in 2012 thus allowing it to come out of the financial crisis. In pursuing a successful investment and management of funds, Citadel believes that ideas are not enough. The company had great preparedness and execution of strategies, which set it apart from the rest.
The team shares a commitment to providing tireless work and collaborating for enhanced performance. It has a comprehensive plan coupled with meaningful iteration. When guided by these shared imperatives, the company is able to move swiftly in creating and seizing opportunities that have great potential.
The investment approach of the company is one that is driven by a combination of advanced quantitative analysis, fundamental research, and technology. Valuewalk’s Ken Griffin is the CEO of Citadel. Griffin was born in 1968 at Daytona Beach in Florida. He started investing in hedge funds when he was at Harvard University. He started a hedge fund while at the University during his second year, which mainly focused on convertible bond arbitrage.
Upon graduating from university, he was lucky to get capital to invest in hedge funds. He was offered $1 million by Frank C. Meyer to invest. Griffin managed to attain 70 percent ROI from the funds he was provided by Meyer.
Griffin founded Citadel with a capital of about $4.6 million. The company grew immensity from 1990, and by 1998, it had more than 100 employees, and its investment capital had grown to $1 billion. Today, Citadel has become a leader in hedge fund management and operates in diverse sectors. It invests in other areas such as repurchase agreements or reverse repurchase agreements.