This rumor was personaly debunked for me late friday afternoon on good authority. It started going around all the squawks early friday morning by late mornign many "BIG" traders that relatively know Citadels positions in certain markets said it was untrue.
They may not have blown up, but until their investors get their monthly NAV numbers no one will know for sure. There are still rumors flying that they had to unwind some large postions that percolated into other markets, perhaps in the dollar/yen carry trade. Citadel has a good reputation for risk control, but even with good practices shit can still hit the fan. I spoke with some big energy traders and they doubted that Citadel's current positions could have caused too much harm. -Neo
Once again, this site is good for laughs, and not much else. Citadel took the Amaranth book. And they fucking MURDERED them on it. They don't take the kind of positions that can blow them out, period. Anyone who knows anything about the shop would find that laughable.
never never say never. but i agree, cit is rock solid as a hedge fund can be. and yes, they fucking murdered them on that trade. got a huge discount. actually what i heard it was literally unbelievable. 20-30% was my info ...
Just checked out Citadel's website, and they employ 1,000 people around the world. It always amazes me why so many of these companies employ so many people. What the hell do they all do? Think of the wage bill and the lost man hours in all those pointless meetings. And how many noncy job titles have to be devised for them all - Acting Executive Senior Vice President In Charge of Corporate Communications & Seminal Product Development etc. I bet the cleaners aren't even called cleaners these days
citadel is actually a fund of funds. it is several very independent strategies with very independent teams. and i would not worry about their efficiency ...
This guy actually knows something about them. To the guy who thinks they have too many people: try getting a job with them.