And Citadel is shrinking> Citadel Investment Group suspends fund redemptions>
Citadel Investment Group is suspending redemptions from its two largest funds, according to a letter Citadel founder Ken Griffin sent investors Friday.
Investors have requested that the Chicago-based firm return about 12 percent of the assets, roughly $1 billion, held in the Kensington and Wellington funds, which are down almost 50 percent on the year.
"We recognize how a suspension impacts our investors, especially those with current financial obligations of their own to meet," wrote Griffin.
Griffin said that maintaining Citadel's financial flexibility in volatile markets is a priority.
Investors could receive their redemptions as early as March 31, the letter said.
Citadel manages $13 billion in assets. It has absorbed management fees normally charged to investors in response to losses in Kensington and Wellington.
As of October, 18 percent of hedge-fund assets, or about $300 billion, managed by 5 percent of hedge funds, were subject to some sort of restriction on withdrawals, Bloomberg News reported. |
