The holiday season is proving anything but joyful for
investors in Ken Griffin’s beleaguered Citadel
Following a decline of nearly 50% in its flagship
multistrategy vehicle, and redemption requests for about $1.2
billion, Citadel has joined the growing list of hedge funds to
freeze client withdrawals.
The Chicago firm has also shut down its special situations
group and has said it will cover a substantial portion of the
strategy’s management fees in 2008 –
assuming the expenses itself, rather than passing them on to
investors in line with its usual approach.
Yesterday, Standard & Poor’s lowered both
its long and short-term counterparty credit...