Citadel, LLC founder Kenneth C. Griffin on wallstreetjournal was born in Daytona Beach, Florida. In 1986 during his freshman year at Harvard Griffin began investing after reading a Forbes magazine article. During his second year at Harvard he started a hedge fund focused on convertible bond arbitrage, his early success with this fund enabled him to start a second fund managing just over $1 million dollars between the two. After graduating Harvard in 1989, Griffin founded Citadel in 1990 with $4.6 million dollars. As of March 2015 Citadel had an estimated #25 billion dollars in capital under management.
Citadel LLC, formerly Citadel Investment Group, LLC, was founded in 1990 by Kenneth C. Griffin the current CEO of the company. The company was initially known as Wellington Financial Group, which was also the name if it’s flagship fund. Citadel operates two separate businesses Citadel and Citadel Securities. Citadel is among the top three percent of hedge funds that have existed for over 20 years.
Citadel manages funds across five investment strategies: equities, commodities, fixed income, quantitative strategies, and credit. The firm is known for its research, risk management culture and start of the art technology. In 2014, Citadel became the first foreign complete Yen fund-raising as part of a program to allow Chinese investors the invest in over seas hedge funds.
Citadel Securities was founded in 2002, providing liquidity and trade execution to retail and institutional clients. The company is the largest market maker in options in the U.S., executing about 20 percent U.S.-listed equity options volume. In 2014, the company expanded its market making by also offering interest-rate swaps, one of the most commonly traded derivatives.
Citadel is known for several major investment over the years. In 2006, the company acquired large portions Amaranth Advisors’ energy portfolio. In 2007, rival Sowood Asset Management agreed to sell their entire portfolio to Citadel to meet obligations before the markets opened on the following business day. In 2007, the company purchased almost 20 percent if e*trade paying $2.5 billion in cash for the stake. By 2013, Citadel had sold of it remaining shares of e*trade.
Citadel is considered one of the top places to work in finance and has been acknowledged through various awards and accolades. The company is also an active participant in the community by providing educational opportunities and helping children and families with acute medical needs. In 2015, Citadel’s contributions to the Greater Chicago Food Depository were the highest from a single corporate donor in that organization’s history. In January 2015, Citadel partnered with the National Museum of Mathematics to tutor, prepare and support math and science students from low-income communities.
Located in the heart of downtown Chicago, Citadel and Kenneth Griffin continue to be of the top rated hedge fund firms in the world.