After a disastrous 2008 that almost destroyed the firm, Citadel is up 58% for the year. Ken Griffin has reduced is flying all over the globe, trying to raise money. Alas, all anyone wants to talk about is last year…
Jenny Strasburg and Scott Patterson, WSJ: Hedge-fund titan Kenneth Griffin lost $8 billion of his clients’ money last year.
Now, he is trying to persuade investors to trust him with more.
“We showed a level of human fallibility,” he told his staff at a late-September lunch in Manhattan.
The price of fallibility: a 55% loss in the big hedge funds at his firm, Citadel Investment Group. His funds’ declines far outstripped the 19%, on average, that hedge funds lost as a whole, according to Hedge Fund Research Inc. For the past year, Citadel prevented investors from withdrawing money they wanted to take out from his two main funds, Kensington and Wellington.
Mr. Griffin is looking for the next big opportunity even though the hangover from the last one is fresh in clients’ minds. He is launching four new funds and expanding in investment banking — hoping to fill the profitable hole left by the collapse of Lehman Brothers.
(btw, where does being down 55% one year and then up 58% the next leave you? Down about 30%).