|
|
Article: Market turmoil a test for Citadel; Hedge fund's moves to cash in on crisis encounter hidden risks.(News)
- Article from:
- Crain's Chicago Business
- Article date:
- August 27, 2007
CopyrightCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Byline: STEVEN R. STRAHLER
Citadel Investment Group LLC's recent purchases of beaten-down assets in distressed housing and credit markets came straight out of the giant hedge fund's playbook: Pounce on bargains when markets overcorrect.
A knack for spotting such arbitrage opportunities has fueled the $15-billion fund's growth and produced double-digit returns for its investors. But two of three high-profile deals Citadel struck this summer have developed complications that suggest its latest bid to profit from market turmoil is no sure thing.
Chicago-based Citadel, founded in 1990 by CEO Kenneth Griffin, last month nearly doubled its stake in ...