Friday, 26 August 2016
Last updated 4 hours ago
Apr 16 2014 | 2:28pm ET
A controversial high-frequency trading firm founded by Citadel Investment Group veterans may now follow that firm into managing outside money.
Chicago-based Teza Technologies may launch a pair of quantitative hedge funds that would be open to clients, Bloomberg News reports. The firm, founded in 2009, currently invests only its partners money.
It is unclear how much Teza would seek from investors.
The potential move to diversify comes as high-frequency trading firms face greater competition, lower profits and increased scrutiny.
In its short life, Teza has been no stranger to controversy. Citadel sought to block the firm from debuting in 2009, accusing founder Misha Malyshev of violating his non-compete agreement. The same year, it hired Goldman Sachs computer programmer Sergey Aleynikov, who was later arrested for allegedly stealing Goldman’s code.