Ken Griffin (Citadel) sent an investor letter detailing the reasons why it’s such an awesome hedge fund:
1. Citadel hires the best people and creates a culture of opportunity. They really do, however this sometimes upsets Daniel Loeb.
2. Citadel takes calculated risks. If one considers “losing 55% in one year” as calculated, then yes, Citadel really takes calculated risks.
3. Citadel embraces opportunities. “Now, we are firmly grounded in the understanding that even the best-run firms – with the strongest balance sheets and industry leading risk-management tools – can face almost unimaginable market forces. Looking forward, we will be more judicious in our use of leverage and restrained in our trading of less liquid or highly complex instruments. Nonetheless, we will continue to use market dislocations as an opportunity to add talent to our organization, and to prudently acquire distressed assets.”
4. Citadel never loses sight of what is important. No, it’s not preservation of capital, it’s the extraordinary responsibility that Citadel investors have entrusted in Ken Griffin.