Citadel Possible IPO in 2016 Citadel was one of the best performing hedge funds in 2014 and 2015. From almost collapsing in 2006 during the financial crisis, the investment firm is now on solid footing. This was after the company’s founder and CEO, Kenneth ‘King’ Griffin, rebuilt the firm, taking home $1.3 billion in 2014 for his efforts. He was the highest earning individual in his field and is one of the biggest figures in hedge funds. The firm currently manages $26 billion, up from $16 billion last year and a 170% increase as compared to January 2012. This was the year that the firm recouped all the investment losses it suffered during the financial crisis. New client capital and performance gains propelled the company to the 13th large …show more content…
This is despite some firms not performing well and the two hedge fund firms that have gone public not performing very well. When asked to speak on Citadel’s position concerning the IPO, Mr. Griffin said it remains to be seen one day depending on facts and circumstances. If Citadel goes public, it will be under more scrutiny as all publicly-traded companies are. However, this may not be such a big issue for the hedge fund firm as Citadel is already strictly regulated already. This is due to new regulation imposed on financial firms by the Dodd-Frank Act. Analysts and investors are happy with the performance of Citadel. The firm is constantly seeking more profitable markets. The firm recently expanded from stock and options and created venture into marketing making. This involves buying and selling securities for others. The company has also changed its investments in certain products and markets. Another reason analysts and investors are pleased with Citadel is its latest talent acquisition. The firm has hired Paul Hamill from UBS to help create fixed income trading execution services. This is in hopes of exploiting opportunities afforded by Dodd-Frank Act derivatives and in particular, interest rate swaps