Hedge Funds Performance

Citadel flagship funds downgraded by Moody's

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Moody's Investors Service downgraded Citadel Investment Group's flagship Kensington and Wellington funds, having concluded that they hadn't properly adjusted their risk management controls to deal with the rapid decline in the markets last fall – a decline that resulted in steep losses for the funds.

The operational quality ratings were lowered from OQ1, meaning "excellent," to OQ2, meaning "very good." They apply to the Citadel Wellington and Kensington Global Strategies funds. Moody's noted in its report that it maintained a favorable view of the other major operations of the funds, such as liquidity and portfolio valuation. Citadel did