Friday, 25 July 2014
Last updated 16 hours ago
Mar 31 2011 | 3:08am ET
Citadel Investment Group is liquidating a residential mortgage hedge fund in the wake of its manager's exit.
The Chicago-based hedge fund giant is closing the $200 million fund less than a year after it debuted in June, Bloomberg News reports. But some investors, spooked by the March 7 resignation of manager Bill King, told the firm they would redeem their investments, leading Citadel to pull the plug.
The firm, which has $11 billion in assets, may also shutter a $100 million offshore version of King's former fund. The fund is up about 9% since inception.
King, who worked at Citadel for about three years, quit after the firm named Glenn Perillo, a close associate of Citadel founder Kenneth Griffin, co-manager of the mortgage funds. Perillo will continue to manage a $700 million separate account employing the strategy for a sovereign wealth fund.
Griffin and Perillo worked together on Citadel's investment in troubled online brokerage E*Trade Financial Corp.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…