Saturday, December 13, 2008

Can Citadel guarantee your profits or money back?

Citadel Investment Group LLC, Chicago’s biggest hedge fund, was hit hard by the fallout from Lehman Brothers’ bankruptcy and the ban on short-selling in September, 2008.

The Kensington and Wellington funds, which together manage about $10 billion, have lost 49.5 percent of their value this year through Dec. 5.

Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets, bet on falling as well as rising asset prices and participate substantially in profits from money invested.

The questions remain: Should hedge funds be regulated? Can any hedge fund recover from 49.5 % drop? Can Citadel Investment Group LLC, one of the world’s largest and most sophisticated alternative investment firms possibly survive a 49.5 % catastrophic loss? Or will Citadel end up a corpse just like many other hedge funds?

Kenneth Griffin

Citadel Investment Group LLC, the Chicago-based hedge-fund firm is a multi-billion dollar hedge fund, founded by Kenneth Griffin in 1990. The company deploys its capital across a highly diversified set of proprietary investment strategies in nearly all major asset classes.

Since its founding, Citadel has grown into one of the world’s largest and most sophisticated alternative investment firms.

Citadel employs more than one thousand professionals with location in Chicago, New York, San Francisco, London, Hong Kong and Tokyo.

Since 1998, Citadel has generated over $10 billion in net profits and currently deploys approximately $15 billion of investment capital around the world.

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