(23.05.2008) У Citadel - один из наиболее мощных по интеллектуальной силе аналитических отделов среди всех инвестиционных фондов, а также есть «запасная» компьютерная система, расположенная где-то за пределами Чикаго.
…Два основных фонда, через которые Citadel торгует на биржах, называются Kensington Global и Wellington. Сейчас на Citadel приходится 2-3% дневного оборота торгов на Нью-Йоркской, Лондонской и Токийских биржах (около 70 млн. акций), почти 10% рынка казначейских облигаций и около 15% рынка опционов. На рынке опционов Citadel – единственный хедж-фонд, который может действительно серьезно на влиять на торги.
Фонд не ограничивает свою торговлю перечисленными инструментами, а зарабатывает буквально на всем, что продается и покупается: от фьючерсов на газ до валюты
Last May we reported that, after years of railing against Citadel's dominant position at the intersection of HFT trading and retail orderflow - Citadel was recently found to be the largest private US trading venue - Federal authorities were investigating the market-making arms of Citadel LLC and KCG Holdings looking into the possibility that the two giants of electronic trading are giving small investors a poor deal when executing stock transactions on their behalf. As a reminder, Citadel is so big and its own private stock-trading platform is so large that, if it were an official exchange recognized by the Securities and Exchange Commission, it would one of the largest registered exchanges in the United States - bigger than Nasdaq. Citadel Execution Services, the firm’s wholesale market-making unit, recently executed 35% of all trades by retail investors in U.S.-listed stocks. It was this retail trading giant that authorities were probing, and specifically looking at internal data concerning the firms’ routing of customer stock orders through exchanges and other trading systems, to see whether they are giving customers unfavorable prices on trades in order to capture more profit on the transactions. In other words, the DOJ is looking into whether Citadel is frontrunning its clients, something we have claimed for years. So what would happens if the DOJ did find what has been obvious to most market participants for years, namely that Ken Griffin's firm was frontrunning retail orderflow fore years? As we summarized at the time, if authorities do move ahead, they would be marching forcefully into the debate over high-speed trading. Critics of HFT, such as this website, have alleged that firms with the fastest trading technology are using speed to manipulate stock prices, giving investors a raw deal. The industry counters that its technology delivers cheaper and more transparent trades to investors. It also delivers guaranteed profits to itself, because while on one hand Citadel is a massive market-maker, responsible for the biggest portion of retail flow traffic, on the other it happens to be the most leveraged hedge fund in the world in terms of regulatory to net assets. * * * Or maybe nothing at all. Because fast forward to today, when without much fanfare at all, Citadel announced it would pay $22.6 million to settle allegations that it "misled clients about pricing trades", a euphemism for it was frontrunning its clients. The Securities and Exchange Commission, soon to be run by a former deal lawyer who was particularly close to Goldman Sachs, said in a statement on Friday that Citadel, without admitting or denying the findings, had agreed to pay $5.2m disgorgement of ill-gotten gains, plus interest of $1.4m, in addition to a $16m penalty. The SEC found precisely what we had said all along: that the company's business unit handling retail suggested to its broker-dealer clients that it would internalize retail orders to provide the best price, but it used algorithms that failed to perform the task from 2007 to 2010; i.e. Citadel was actively trading against the best interests of its clients, and adverse in its own best interests. "These two algorithms represented a small part of Citadel Securities' internalization business, but they nevertheless affected millions of orders placed by retail investors because of Citadel Securities' large role in that market," said Robert Cohen, co-chief of the SEC enforcement division's market abuse unit. Citadel, which has since discontinued use of the algorithms, said in a statement Friday that it takes legal compliance "very seriously." Today, Citadel Securities resolved an issue related to the adequacy of certain disclosures from late 2007 to January 2010. We take very seriously our obligations to comply fully with all laws and regulations. As the market leader we are committed to providing superior service and execution quality to our clients each and every day. To those who want to see a Citadel internalizer algo in action, we recommend you read the following article by Nanex' Eric Hunsader, who explains the entire process: "Retail Trades Disadvantaged by Direct Feeds Internalizers buy at the direct feed price, sell to retail at the SIP feed price."
Trader faced charges it misled retail customers over prices it obtained
Trader faced charges it misled retail customers over prices it obtained
(Reuters) - Citadel Securities, the market-making arm of billionaire hedge-fund manager Ken Griffin, has agreed to pay $22.6 million to settle charges that it misled customers about the way it priced...
The chapters of the book explore various topics including job losses from the closure of the Long Beach Naval Shipyard, hazing at The Citadel, the effects on the local Dawg Pound fan base as the original Cleveland Browns pondered a move to Baltimore, the rise of the Promise Keepers movement, male roles in the 1960s New Left, the My Lai Massacre, the making of the film Rambo: First Blood, the Waco Siege and the making of the subsequent documentary film Waco: The Rules of Engagement, the Project Apollo moon landings, and men in the pornography industry. The common theme that runs through the book is that men have attempted to live up to the expectations of masculinity established in post-World War II America, only to find society not living up to its end of the bargain as globalization, downsizing and other economic pressures have made it difficult for men to live up to their expected roles as providers. At the same time she applies a feminist critique to these expectations, while noting that the feminist critique of the rise of an ornamental culture applies to men as much as women: As the culture has shifted toward an ornamental one in which awards, popular culture symbols of ideal masculinity, and economic bottom lines have become the societal norms of success, ordinary men are losing self-esteem and a sense of purpose. In particular she links the problems of many men today with abusive or absent fathers when growing up, and is critical of the rise of a corporate "organization man" culture in the 1950s and 1960s, which led to absent fathers failing to provide a positive, nurturing environment to their children, and then to failed expectations as companies laid off longtime loyal employees during the 1980s and 1990s. https://en.wikipedia.org/wiki/Stiffed:_The_Betrayal_of_the_American_Man Image by Luigi Novi [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0) or CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons
Submitted by Mike Shedlock via MishTalk.com, Fed Governor Jerome Powell says “Signs of excesses are ‘isolated’. Asset Prices ‘not broadly unsustainable’“. The Federal Reserve does not see “broadly unsustainable asset prices,” a senior U.S. central banker said Saturday, with financial excesses stemming from almost a decade of ultralow interest rates “isolated.” In remarks as part of a panel discussion at the American Finance Association meeting, Fed Gov. Jerome Powell defended the central bank’s policy that has kept interest rates at historic lows since the financial crisis. The Fed pushed rates to zero in December 2008 and has only raised them only twice since, both in the past year. The policy of low rates has helped the economy recover, and has helped strengthen the financial sector, he said. “By many measures the U.S. financial system is much stronger than before the crisis,” Powell said. There are trade-offs, because low interest rates can have adverse impacts on financial markets in a number of ways, he said. “Low rates can lead to excessive leverage and broadly unsustainable asset prices — things that we watch carefully for and do not observe at this point.” Missed Elephants The Greenspan Fed missed the dotcom bubble The Greenspan Fed and the Bernanke Fed missed the housing bubble The Bernanke Fed and the Yellen Fed missed the asset bubbles now in progress The only way to not see this bubble is to be willfully blind to economic fundamentals for the sole benefit of banks and the wealthy, to the detriment of everyone else. And then there's Citadel's Ken Griffin... “We are now more levered in corporate America than ever before” Which - is a fact!
U.S.-backed fighters take a historic citadel from Islamic State in Syria's Raqqa province, the heart of the jihadists' imposed caliphate. Matthew Larotonda reports. Subscribe: http://smarturl.it/reuterssubscribe More updates and breaking news: http://smarturl.it/BreakingNews Reuters tells the world's stories like no one else. As the largest international multimedia news provider, Reuters provides coverage around the globe and across topics including business, financial, national, and international news. For over 160 years, Reuters has maintained its reputation for speed, accuracy, and impact while providing exclusives, incisive commentary and forward-looking analysis. http://reuters.com/ https://www.facebook.com/Reuters https://plus.google.com/u/0/s/reuters https://twitter.com/Reuters
In 2016, Vermont voters selected Democratic Presidential nominee Hillary Clinton by more than 26 percentage points over Republican nominee Donald Trump, while also choosing Republican Gubernatorial nominee Phil Scott by over eight points. Contrariwise, West Virginia voters chose Trump with an overwhelming 68.7 percent of the vote. This was his biggest win in the country. However, those same Mountain state voters elected Democrat Jim Justice by approximately seven percentage points. One could brand this phenomenon "split voter syndrome." Actually, it fits a relatively predictable pattern. Conservative states will often elect Democratic Governors, and liberal states will often elect Republican Governors. Sometimes, opposite party governors have the upperhand and record stratospheric job approval ratings. The formula is often that the candidate runs as a non-ideological moderate, emphasizing where he/she differs from the national party. In states where the opposite party controls the legislature, the Gubernatorial candidate runs as a check, with a modest legislative agenda. Furthermore, the candidate often exploits internecine divisions within the other party. The epitome of this phenomenon is Massachusetts. The state has had Republican Governors for 16 of the past 26 years. Yet less than 15 percent of the state's voters are Republicans. In 1990, Republican Bill Weld won the Commonwealth's Governorship by calling himself "a fiscal conservative and social moderate." He excoriated the outgoing Democratic Governor Michael Dukakis and the Democratic Legislature for actuating a sales tax hike, and blamed them for the state's economic decline. Weld did not run as an activist movement conservative who would make the state a laboratory for rightwing governance. With the State Legislature so heavily Democratic, voters knew he would be halted if he tried. Weld averred: "I believe in keeping the priorities list short." Weld was also aided by a schism in the Democratic Party between liberals who had supported former Massachusetts Attorney General Francis Bellotti or Lieutenant Governor Evelyn Murphy in the primary and socially conservative Democrats who selected the eventual nominee, Boston University President John Silber. Silber's temperamental personality benefited Weld. During an interview with WCVB'S Natalie Jacobson, Silber was asked what his greatest weakness was. He replied harshly: "You find a weakness." Many Democrats came to see Weld as less threatening. Weld captured nearly all Republican voters, a majority of Independents, and an impressive 30 percent of Democrats. Weld's fiscal conservative, socially moderate template led him to be re-elected with a record 71 percent of the vote. His Republican successor, Paul Cellucci, followed by winning with the same electoral blueprint in 1998. In 2002, Republican nominee Mitt Romney maintained: "I think people recognize that I'm not a partisan Republican, that I'm someone who is moderate, that my views are progressive and that I'm going to go to work for our senior citizens, for people that have been left behind by urban schools that are not doing the right job. So they're going to vote for me regardless of the party label." Romney would often campaign with three photographs behind him: one of his Democratic opponent, Shannon O'Brien, another photograph of the Democratic Speaker Tom Finneran, and another of the likely Senate President Robert Travelini. Romney tattooed the trio "The Gang Of Three." He pledged to be a check on the overwhelming Democratic legislature. O'Brien had a hard time arguing why one party should control both legislative chambers and the Governorship. Romney won the election. Romney governed largely as a moderate during his first two years in office, and remained popular. However, in his last two years in office, Romney moved to the right, as he became Chairman of the Republican Governors Association. He spent much time out of the state, and began calling himself a conservative. He would joke to national audiences that "being a conservative Republican in Massachusetts is a bit like being a cattle rancher at a vegetarian convention." Romney also alienated moderates with his vociferous opposition to Gay Marriage. With an eye on the White House, Romney did not seek re-election. Lieutenant Governor Kerry Healey won the Republican nomination to succeed him. While she tried to run as a moderate, campaigning with the still popular Weld, disgruntled voters saw her as an extension of Romney, whose job approval rating languished in the thirties. Consequently, she lost to Democrat Daval Patrick who successfully tethered Healey to Romney. In 2014, the Massachusetts GOP nominated Businessman Charlie Baker for Governor. Baker is a Weld protégée, who emphasized his moderation and non-ideological pragmatism. Baker was elected and stands today as the nation's most popular Governor, even as the state voted for Hillary Clinton by over 27 points, winning all 14 counties in the state. There is a plethora of examples of Republican states that elect Democrats as Governors. They win running as checks on the legislature. Their legislative agenda is usually modest. Idaho, Utah, and Wyoming are arguably the three most Republican states in the nation. None has voted for a Democratic Presidential nominee since Lyndon B. Johnson's electoral landslide victory in 1964. Yet all three states have recently had popular Democratic Governors. Cecil Andrus was elected Governor of Idaho in 1970, and re-elected in 1974 with a resounding 70 percent of the vote. In 1977, Adrus relinquished the Governorship to become U.S. Secretary of the Interior. Democratic Lieutenant Governor John V. Evens succeeded him, and was elected twice in his own right. Andrus was elected again to the Governorship and served another two terms. Thus, from 1971-1995, the Republican citadel of Idaho had only Democratic Governors. Utah had a string of Democrats for twenty years. Democrat Calvin Rampton was the chief magistrate of Utah from 1965-1977. He remains the only Beehive State Governor to serve three terms. Democrat Scott Matheson, who served for two terms, succeeded him. Along those same lines, in Wyoming, where the Democratic Party has not held a majority in a legislative chamber since 1936, they have had popular Democratic Governors for all but eight years, from 1975 - 2011. The most recent Democrat, Dave Freudenthal, was re-elected with 70 percent of the vote in 2006, despite the fact that well over 60 percent of Cowboy State voters are Republicans. While a moderate opposite party Gubernatorial nominee is often in the political catbird seat, the reverse is true for Congressional candidates. Congressional candidates can style themselves as being independent-minded, yet their opponent will invariably make the case that in voting for an opposite state candidate, they are voting to keep or put that candidate's party in power. For example, in 2006, Republican U.S. Senator Lincoln Chafee of Rhode Island sported a voting record to the left of his Republican colleagues, and mustered high job approval ratings. Yet he lost re-election. Chafee's Democratic opponent, Sheldon Whitehouse, had few issues to bludgeon Chafee with, so he argued that a vote for Chafee would be a vote to keep Republicans in control of the U.S. Senate. Whitehouse ran against the "Republicans in Washington." He called for "a Democratic majority in D.C." Whitehouse won the election and the Democrats took the Senate majority that election. This paradigm was also exhibited in the 2010 mid-term elections; the Republican Party won three of Arkansas' four seats in the U.S. House of Representatives. In addition, the GOP dislodged Democratic U.S. Senator Blanche Lincoln. Despite these defeats, Democratic Governor Mike Beebe cruised to re-election, garnering 66 percent of the vote. Quite ironically, if a candidate runs for Governor of a state where his/her party suffers from an electoral shellacking in national elections, they might actually be at an electoral advantage. The formula is simple. Run as a non-ideological moderate with a modest legislative agenda. Pledge to be a check on the excesses of the dominant party in the legislature, and if possible, exploit internecine conflicts within the opposing party. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.
BEIRUT (Reuters) - U.S.-backed militias in Syria have captured an ancient citadel from Islamic State (IS) in a strategically significant advance against the jihadist group in its stronghold of Raqqa province, a spokesman said on Friday.
Депутат Европарламента Андрей Мамыкин призвал Раймонда Вейониса рассказать правду о его визитах в Грузию и сделке по продаже банка «Citadele» в ответ на президентскую критику визита европарламентария в Сирию.
It was some time back in 2009 when we first predicted that in a world in which central banks have taken away the "fun" from fundamental analysis (having effectively nationalized capital "markets"), that in the not too distant future quants - or "traders" whose only value added is to react rapidly after the news and/or be the fastest to chase any given momentum wave - would be paid far better than plain-vanilla fundamental analysts - those who use conventional financial analysis to make price forecasts, and whose work has traditionally been highly prized by hedge funds, yet are now on their way to becoming obsolete in the New Normal. For the likes of Dan Loeb, and his Third Point, once a staunchly fundamental-analysis only driven hedge fund, that time has arrived. According to Bloomberg, Dan Loeb will pay Matt Ober, a quant, pardon "data scientist" who left WorldQuant for Third Point more than $2 million according to a breach of contract claim filed by his former employer. Matt Ober is smiling Ober, 32, who starts next month as Third Point’s "chief data scientist", i.e., head quant, said in a filing that he will be paid a base salary of $200,000, the same as WorldQuant gave him, plus bonuses, and disputed that $2 million in compensation is guaranteed. As Bloomberg adds, Loeb is joining other hedge fund names in developing big data and quantitative investing to boost returns, i.e., phasing out fundamental analysis in favor of simple quant-driven trading. Scientists and coders who mine, clean and model information are in high demand after being relegated for years to back office status. Experienced data scientists can earn $500,000 to $700,000, and as much as three times that for those with extensive backgrounds, according to recruiter Alexey Loganchuk. “It is too early to call data scientists the new masters of the universe but they are on their way there,” said Loganchuk, founder of Upgrade Capital, a New York recruiting firm that focuses on alternative data. “Because of how new the space is, the transition from entry level to management can happen quickly. There are several people out there making seven figures in their mid-twenties.” As Bloomberg's Saijel Kishan notes, Ober joined Igor Tulchinsky’s WorldQuant in 2011 as a data product analyst and was later promoted to co-head of data strategies at the Old Greenwich, Connecticut-based hedge fund, according to the filing. He sought out data from vendors for use in trading. Ober will help Third Point more quickly get up to speed with bid data, helping identify which datasets could be used for specific trades, according to the filing. Meanwhile, as quant compensation soars, hedge fund managers and senior analysts are facing smaller paychecks. Those with seven years of experience expect a 14% decrease in total compensation to about $685,000 for 2016, according to a September survey by Odyssey Search Partners. Winton Capital Management in London said in April it’s starting a data science center in San Francisco and plans to hire some 40 scientists. Citadel in Chicago picked its former chief risk officer for a new role of chief data officer in September. And soon, once Ray Dalio manages to upload his brain into a computer and others reverse engineer how he did it, all the quants, pardon "data scientists" will be just other computers, paid nothing, who trade against other computers in a market in which - since logic and common sense no longer matter - humans are no longer required.
Когда дело касается поддержки фондового рынка США, Федрезерв подходит к этому вопросу весьма деликатно и завуалированно, сохраняя между собой и рынком как минимум один уровень посредничества. Обычно, в моменты, когда стресс на рынке достигает пиковых показателей, это выглядит как «рекомендация» для Citadel, тяжеловеса среди хедж-фондов, с предложением осуществить интервенцию, чтобы пресечь аг читать далее…
When it comes to propping up the stock market in the US, the Federal Reserve does so with a certain degree of nuance, keeping at least one layer of disintermediation between itself and the market, which usually involves "advising" Citadel to intervene when it comes to acute moments of market stress, granting the HFT-heavy hedge fund a green light to stop and reverse and violent selloffs, or more traditionally, allowing companies to repurchase their own stock thanks to (until recently) record low interest rates. This is nothing new: as Goldman has repeatedly pointed out, in 2016 corporations have been the largest source of equity demand, purchasing $450 billion of US equity through buybacks and cash M&A (net of share issuance). Outside of the Great Recession, corporates have been the primary source of US equity demand (see Exhibit 1). Furthermore, Goldman recently predicted that as a result of Trump's proposed repatriation tax holiday, buybacks in 2017 will surge even more, to wit: Buybacks ($780 billion, +30%) will rise sharply in 2017. Our economists expect tax reform legislation will pass during 2H 2017. President-elect Trump and House Republicans have expressed support for a one-time tax on previously untaxed foreign profits as part of their tax reform proposals. We forecast that S&P 500 firms will repatriate $200 billion of their total $1 trillion of cash held overseas in 2017 and spend $150 billion of the repatriated funds on share repurchases. Managements generally remain committed to buybacks, which will benefit from 2% US GDP growth and ex-Energy earnings growth of 6%. None of that should be news to regular readers, however it is worth repeating that the primary source of demand for US equities are the stock-issuing corporations themselves, who - in a page right out of Baron Munchausen - continue to pull themselves up by their bootstraps with the blessings of the Federal Reserve's cheap money. That may soon be changing, however, now that rates have spiked higher and announced buyback have tumbled 28% Y/Y according to FactSet. Meanwhile, in Japan, the BOJ had taken a less "stealthy" approach, and as has been the case for years, the Japanese central bank under Kuroda has had far fewer qualms about intervening directly in the equity markets by purchasing either ETFs, REITs or single name securities. Did we say "less stealthy?" We meant the central bank is now intervening directly in the stock market with all the finesse of a stock bull in a china store (just not Chinese china, it's a patriotic thing), and according to a report by the Nikkei, the Bank of Japan is set to become the biggest buyer of ETFs in 2016 for the second straight year, in the process masking a srecent surge in foreign investor selling. According to data through Thursday, the value of the BOJ's ETF purchases this year has topped 4.3 trillion yen ($36.5 billion), up 40% from 2015. Last year, the central bank bought more than 3 trillion yen worth of ETFs. The data was released by the BOJ and compiled by the Tokyo Stock Exchange. Should it continue at this rate, in a few years, the BOJ will have nationalized the entire market: as of this moment it own approximately 2.5% of the market cap of the entire Topix according to the FT chart below. As the FT recently noted, "the central bank’s overwhelming dominance of ETFs, combined with the structural oddities of Japan’s most famous but esoteric equity benchmark, the price-weighted Nikkei 225 Average, has given the BoJ indirect but massive positions in many of the country’s biggest corporate names." Normally, this kind of activity would be associated with command-style, centrally-planned economies such as that of the USSR. Now, however, it is considered part of the "new normal." As the BOJ bought, foreign investors sold... a lot; in fact more than a net 3.5 trillion yen worth of Japanese shares through Dec. 16. These sales were "offset" by the BOJ's intervention, traditionally through trust banks, including those commissioned by the Government Pension Investment Fund, to buy a net 3.5 or so trillion yen worth of shares. What is scarier, however, is the BOJ's own direct intervention: the figure for trust banks was below that for the BOJ, which "will become the largest buyer of ETFs this year," said Masatoshi Kikuchi of Mizuho Securities. This year, the central bank increased its buying after doubling its annual ETF goal to purchase 3 trillion yen worth of the instruments. The decision came in July as the bank stepped harder on its yen-printing pedal. The central bank's ultimate goal is to flood the economy with so much money that prices get moving predictably upward again; the BOJ is targeting a 2% inflation rate. Instead, one day it will create a currency crisis, as faith in the Yen collapses and unleash hyperinflation. We are not there just yet, though. The value of the bank's ETF holdings, based on purchase prices, is 11 trillion yen. However, unrealized gains send the market value to 14 trillion yen, according to an estimate by Mitsubishi UFJ Kokusai Asset Management, Nikkei added. And while foreigners have bought more than a net 2 trillion yen of Japanese shares since November, when Trump was elected president, the amount does not offset their selling in the first half of 2016. Furthermore, there is speculation that the Trump rally is on its last legs, and the next move will be lower. This has already been noted in the USDJPY which has fallen for 4 straight days. The BOJ's ETF program has propped up share prices but distorted "the formation of stock prices," said Shingo Ide of NLI Research Institute. Alternatively, one could say that the BOJ's ETF program has made the very definition of "market" a joke. The ETF-buying program allows, and in fact mandates, that the central bank purchase a wide range of stocks regardless of the issuing companies' business results. This means that zombie companies which would otherwise be insolvent and bankrupt, are kept artificially alive thanks to central bank intervention, which in turn leads to deflation as in the race to the bottom, "zombie companies" around the globe are willing to undersell all their competitors in "hail Mary" hopes of survival, leading to lower interest rates and even more central bank intervention.
Aleppo was Syria’s most populous city when the civil war arrived in July 2012, but the conflict has taken a huge toll, with Russian airstrikes since September 2015 causing intense devastation, as these before and after images show Aleppo’s citadel photographed on 9 August 2010 and 13 December 2016. Continue reading...
In what may be the latest ironic twist for the hedge fund industry, with stocks soaring few if any participants of the beleaguered "2 and 20" smart money community have been able once again to take advantage of the powerful Trump-inspired move higher across risk assets, perhaps impacted by shorts or offsetting duration exposure, which as noted over the weekend, has seen Mark to Market value crushed. As a result, the latest performance of the long/short hedge fund index is a big fat zero YTD, as shown in the following recent chart from Goldman's David Kostin. This confirms what JPMorgan reported two weeks ago when it said that "most hedge funds missed the Trump rally." And while much of the hedge fund industry hunkers down, in preparation for a slow death courtesy of a thousand redemptions absent drastic changes, today we learn that another prominent hedge fund has decided to call it quits and shut its doors. As Reuters reports, "prominent technology investor Chris Connor is shutting down his hedge fund less than one year after launching it, and will be joining Citadel" which together with Millennium, has become one of the largest incubators of "second chance" portfolio managers. Connor becomes the latest in a string of portfolio managers to join Citadel's Aptigon unit, launched earlier this year as the firm's fourth stock-picking business. At least some of Connor's four Ardmore analysts will also be moving to Aptigon, one of the sources said. At Aptigon, Richard Schimel, senior managing director of Citadel, has hired dozens of managers and analysts since he joined the firm after closing down his own small fund, Sterling Ridge. Connor launched Ardmore Global Investors, which concentrated on picking global technology, media and telecommunications stocks, in March. What is once again surprising, is that the closure comes not due to one or more months of negative performance: in fact, according to Reuters, the fund was roughly flat at the end of November and has suffered a paltry loss of just 0.3% for the year, indicating that to succeed and grow, hedge funds must not only break even, but outperform the market, i.e., generate alpha, something most of them appear to have forgotten how to do in the past 7 years. More details: In March Ardmore started trading with $120 million which grew to $180 million, one of the sources said, adding that the firm is now returning all capital to its investors. Connor established his reputation at John Thaler's now closed hedge fund JAT Capital and was ranked as that firm's top performing investment analyst. Soon after JAT closed its doors in 2015, Connor began laying the groundwork for his own firm. It started trading as volatile markets took a bite out of many established funds' performance. But Connor told clients in a letter that Ardmore was set up for exactly these kinds of conditions, promising a balanced portfolio that was positioned to be "opportunistic in noisy and volatile markets." Meanwhile, pressured by subpar returns, skittish LPs and cheaper alternatives in a world in which central banks will not allow even a modest downtick in the S&P, raising fresh cash from institutional clients is becoming tougher, and some 782 funds closed their doors in the first three quarters of 2016, marking the fastest pace of hedge fund closures since the 2007-2009 financial crisis, HFR data show. Ultimately, however, the biggest threat to the hedge fund industry may not be central bankers, who have made shorting the equivalent of career suicide for much of these hedge fund space, but "passive investing" alternatives: ETFs, ETNs, roboadvisors and the like, which, if the following chart from BofA is correct, will surpass the AUM of the active investing space within 8 years.
BOSTON (Reuters) - Investment firm Citadel LLC said on Tuesday that its chief legal officer, Adam Cooper, plans to retire in 2017 and that Shawn Fagan has been promoted to general counsel for its...
BOSTON, Dec 20 (Reuters) - Prominent technology investor Chris Connor is shutting down his hedge fund less than one year after launching it and will be joining Citadel, one of the industry's biggest players, two sources familiar with the move said on Tuesday.