Citadel Investment Group up 30% in '07

Discussion in 'Wall St. News' started by ASusilovic, Jan 4, 2008.

  1. Ending the year on a strong note, Citadel Investment Group LLC gained 30 percent in a volatile market in 2007, and the Chicago-based hedge fund has reached $20 billion in assets, according to a source familiar with the company's results.

    In contrast, the Dow Jones industrial average ended up 6.4 percent for 2007.

    In 2006, Citadel also topped 30 percent, helped by energy bets after it took over some assets from Amaranth Advisors LLC, which imploded in September 2006.

    That deal has continued to pay off in 2007, and Citadel has continued to make opportunistic purchases of distressed assets.

    In November, Citadel said it was sinking about $2.5 billion into E-Trade Financial Corp., which has been hurt by shaky mortgage investments, largely because it is a fan of the online discount brokerage's business model.

    In August, Citadel bought assets controlled by Sentinel Management Group Inc. after the Northbrook-based cash-management company froze client withdrawals.

    In July, Citadel, whose assets under management grew to $20 billion from $16 billion in 2006, took control of the remnants of Sowood Capital Management LP after the firm's two hedge funds lost more than 50 percent of their assets in the summer's market upheaval.

    And in June, Citadel paid $24 million in a bankruptcy auction for assets of subprime lender ResMae Mortgage Corp.,0,4833460.story
  2. The Christmas Party must have been good. At this rate, Griffin ought to become wealthier than Buffett in several years time.
  3. He probably will there is no stopping him. They seem to be the best at the moment.
  4. Div_Arb


    They will screw something up eventually.
  5. I doubt it not Citadel.
  6. It´s an easy game : wait until somebody makes a false step and "pretend" to give him a "helping" a way they do...:)
  7. Being the "garbage collector" may not be such a dirty business to be in. If and when they start collecting foreign garbage, that'll be reason for concern.
  8. Still can't ever see them screwing up.
  9. bt116


    Probably going to IPO next year and that will probably double griffin's loot. so lets say that puts him in the 5-10 bil range. how can he go from there to buffet money? it's probably not going to happen. 5-10 bil is a ton of money and he is certainly already a master of the universe.

    as for them mis-stepping...if they do, its not going to be on one of these so called "picking up others garbage" thing. that's the beautiful thing about what they are doing. they're not picking up garbage, they're picking up salvageable positions for beneath garbage prices because the schmos they buy them from have no liquidity and therefore no choice but to sell them at garbage prices. thats the beauty of keeping a ton of cash on hand (which citadel does). you go find one of these baby funds that is over leveraged 100 times over, with investors asking for money back, and they have absolutely no choise but to sell at a horrible price. trust me citadel is not bidding on anything without giving themselves plenty of wiggle room that it turns out to be crap. theyre buying it below crap price.

    the market can stay illogical longer than you will stay liquid!
  10. the market is a beast, isn´t it ? :D :D :D
    #10     Jan 4, 2008