Can Citadel come back?
Mon Dec 15, 2008
Stellar returns have made Citadel a powerhouse – and founder Ken Griffin the envy of his peers. But steep losses are raising questions about the Citadel model.
Big losses at Citadel raise questions about the Ken Griffin
By Michelle Celarier with Carolyn Sargent
Ken Griffin might be his own worst
enemy. Even when it would behoove him to play nice, he can't
always manage to do it. Consider the Citadel Investment Group
founder's conduct at the November 13 Congressional hearing on
hedge funds - a rare public appearance. When House Committee on
Oversight and Government Reform Chair Henry Waxman - known as
the grand inquisitor for his prosecutorial bent - asked five
assembled hedge fund heavyweights if more regulation of hedge
funds was needed, four of the managers gave the same answer,
right down the line. George Soros: yes; Jim Simons, yes; John
Paulson, yes; Phil Falcone, yes.
When it came to Griffin's turn, he ducked the question
until, when asked again point blank, finally gave this
response: "No, it is not my belief that we need greater
ISSN: 2151-1845 / CDC10004H
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