Rechtshaffen Leaves Citadel, Forms Own Hedge Fund

May 15 2007 | 11:07am ET

The hedge fund manager whose move to Citadel Investment Group sparked one of Daniel Loeb’s more notable outbursts is striking out on his own.

Andrew Rechtschaffen, who joined Citadel’s event-driven team 18 months ago from Greenlight Capital, is forming Obrem Capital in New York, Financial News reports. The new hedge fund will reportedly employ a long/short equity strategy.

When Rechtschaffen joined Citadel in 2005, it prompted Loeb, the founder of activist hedge fund Third Point noted for his acid tongue in dealing with management of his portfolio companies, to turn his ire on Kenneth Griffin, the founder of Citadel. In an e-mail, he warned Griffin to keep his hands off staff at Third Point and its hedge fund allies.

“Should you attempt to hire people from them I will consider it a similar act of war,” Loeb wrote, referring to Rechtschaffen’s hiring.

At press time, Rechtschaffen had not returned calls for comment.

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