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To: Skywatcher who wrote (31940)	11/28/2006 12:41:32 PM
From: Bucky Katt	Read Replies (2) \| Respond to of 48461

Is this odd or just the new era?> Citadel marks a first with debt sale. Nov. 28 (Bloomberg) -- Citadel Investment Group LLC plans to sell as much as $2 billion in notes in what may be the first-ever bond sale by a hedge fund, Fitch Ratings said. The Chicago-based fund, which has more than $12 billion under management, will carry an investment-grade rating of BBB+ from Fitch for the medium-term note offering. Citadel spokesman Bryan Locke declined to comment. Citadel returned 20 percent this year through Oct. 31, helped by gains on convertible bonds and statistical arbitrage, a strategy aimed at profiting from the idea that prices of various securities will tend to hold to a historic relationship. It also benefited from the collapse two months ago of energy trader Amaranth Advisors LLC, a Greenwich, Connecticut-based hedge fund that lost $6.6 billion on wrong-way natural gas bets. ``There will be very few hedge funds that will be eligible for an investment-grade rating,'' said Fitch analyst Eileen Fahey in Chicago. ``There will also be very few hedge funds with the wherewithal to diversify their funding as much as Citadel has.'' Citadel is the only hedge fund with a public debt rating from Fitch, according to Fahey. Debt rated above BB+ at Fitch is considered investment grade. Hedge funds are unregistered pools of capital from wealthy individuals and institutions that allow managers to participate significantly in the gain or loss of the money invested. Citadel, founded in 1990 by Kenneth Griffin, keeps 20 percent of all trading profits and charges all expenses to investors. Citadel plans to sell medium-term notes, which are unsecured, continuously offered obligations with maturities ranging from nine months to 40 years. Each medium-term note issue is drawn down from the program level, which in this case is $2 billion, according to Fitch.