Hedge Funds Performance

Storming the Citadel: will investors flee?


Facing losses of more than 35% year to date in its two multistrategy funds, the now-$15 billion Citadel Investment Group so far has had only minimal redemptions. But Citadel has to be bracing for the next deadline when investors can line up to cash out: November 15.

Rumors about Citadel's financial health have been flying ever since its losses became well known, and the firm took unprecedented action in late October to calm the waters by hosting a conference call for its noteholders that it seemed everyone on the Street was trying to get in on.

During the call, Citadel