Senior Citadel Fund Manager Resigns After Billion-Dollar 2014 Loss

Apr 17 2015 | 1:06pm ET

A senior manager at hedge fund Citadel has resigned after posting a staggering $1 billion loss last year. 

Derek Kaufman, who was head of global fixed income for the fund and on Citadel’s portfolio committee, left in early April, according to media reports citing Katie Spring, a spokeswoman for Citadel. 

His trades are currently being wound down and will be liquidated.

Kaufman’s departure and the size of the losses he generated was announced quietly amidst news that former Federal Reserve chairman Ben Bernanke was joining Citadel as an advisor. 

Kaufman’s portfolio comprised complex interest rate, currency, and government bonds bets within the $4 billion Global Fixed Income Fund. The broader fund gained 0.75% percent in 2014, according to Bloomberg.

Kaufman left JPMorgan Chase in 2008 to work for Citadel.

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