Citadel Hedge Fund up 30% in 2007

[HighFlyer]

Citadel Investment Group up 30% in '07
Chicago-based hedge fund reaches $20 billion in assets

By Becky Yerak | Tribune staff reporter
7:19 PM CST, January 3, 2008

Ending the year on a strong note, Citadel Investment Group LLC gained 30 percent in a volatile market in 2007, and the Chicago-based hedge fund has reached $20 billion in assets, according to a source familiar with the company's results.

In contrast, the Dow Jones industrial average ended up 6.4 percent for 2007.

In 2006, Citadel also topped 30 percent, helped by energy bets after it took over some assets from Amaranth Advisors LLC, which imploded in September 2006.

That deal has continued to pay off in 2007, and Citadel has continued to make opportunistic purchases of distressed assets.

In November, Citadel said it was sinking about $2.5 billion into E-Trade Financial Corp., which has been hurt by shaky mortgage investments, largely because it is a fan of the online discount brokerage's business model.

http://www.chicagotribune.com/busine...,4833460.story

[milo]

it looks like they may have an IPO too in the near future

http://www.businessweek.com/magazine..._top+stori es

[ManhattanTrader]

I'm looking forward to owning a piece of it

[aiki14]

Originally Posted by ManhattanTrader

I'm looking forward to owning a piece of it

I would examine alternatives. There is an net outflow to hedge funds going on now and there is good reason, there are low cost (comparatively) mutual funds with better absolute return. While the guys at citadel are terrific they have nothing on Ken Heebner of the cgm focus fund (cgmfx) who has a better record than any of the equity hedge funds over most timeframes. If you're looking for exposure outside of equities, you might look at some of the other classes of hedge funds, Global Macro or straight currency might give you even better upside than an equity, equity long bias, or long/short. You could also look into a reg D or risk arb funds in the market we're likely to see going forward this year at least, if you want "alternative" equity exposure.

[ManhattanTrader]

Originally Posted by aiki14

I would examine alternatives. There is an net outflow to hedge funds going on now and there is good reason, there are low cost (comparatively) mutual funds with better absolute return. While the guys at citadel are terrific they have nothing on Ken Heebner of the cgm focus fund (cgmfx) who has a better record than any of the equity hedge funds over most timeframes. If you're looking for exposure outside of equities, you might look at some of the other classes of hedge funds, Global Macro or straight currency might give you even better upside than an equity, equity long bias, or long/short. You could also look into a reg D or risk arb funds in the market we're likely to see going forward this year at least, if you want "alternative" equity exposure.

thanks for your advice, aiki14. you seem to know a bit about alternative investments. yes, I've been looking into diversifying into other asset classes, including alternative investments. can you suggest any other AI fund?

2 years ago I started buying this german stock and I like the "action" so far. it's mostly a stock to keep for the long term. It pays a very good dividend. check it out.

[aiki14]

Originally Posted by ManhattanTrader

thanks for your advice, aiki14. you seem to know a bit about alternative investments. yes, I've been looking into diversifying into other asset classes, including alternative investments. can you suggest any other AI fund?

2 years ago I started buying this german stock and I like the "action" so far. it's mostly a stock to keep for the long term. It pays a very good dividend. check it out.

How are you defining alternative investments? Most of my Ai portfolio is made up of a couple hedge funds, some currency baskets, some oil limited partnerships, and real estate.
Other than the hedge fund as an alternative asset class in and of itself I don't use AI funds. I have the Aptus Capital offshore fund which had 41% NOF last year, and the Magnum China Russia India Fund which hasn't sent me the '07 numbers yet, but is likely to be in the 50% NOF range. The Aptus is a Global Macro fund and the Magnum a fund of funds.

Without being too personal, it is required to invest in hedge funds that you be an accredited investor, the same holds true for oil limited partnerships, are you aware of the current requirements?

[ManhattanTrader]

Originally Posted by aiki14

How are you defining alternative investments? Most of my Ai portfolio is made up of a couple hedge funds, some currency baskets, some oil limited partnerships, and real estate.
Other than the hedge fund as an alternative asset class in and of itself I don't use AI funds. I have the Aptus Capital offshore fund which had 41% NOF last year, and the Magnum China Russia India Fund which hasn't sent me the '07 numbers yet, but is likely to be in the 50% NOF range. The Aptus is a Global Macro fund and the Magnum a fund of funds.

Without being too personal, it is required to invest in hedge funds that you be an accredited investor, the same holds true for oil limited partnerships, are you aware of the current requirements?

by alternative investments I mean not just classic hedge funds, but timber investing, maritime funds, life settlements, "creative" real estate financing, etc.

yes, I'm aware of the accredited investor requirements. even though I'm not there yet, I will be in a couple of years (hopefully In the meantime, I'm investing in funds of hedge funds traded on foreign stock exchange. take a look at:

CRE.SW
ALTN.SW

do you have any experience with life settlements investing?

[aiki14]

Originally Posted by ManhattanTrader

by alternative investments I mean not just classic hedge funds, but timber investing, maritime funds, life settlements, "creative" real estate financing, etc.

yes, I'm aware of the accredited investor requirements. even though I'm not there yet, I will be in a couple of years (hopefully In the meantime, I'm investing in funds of hedge funds traded on foreign stock exchange. take a look at:

CRE.SW
ALTN.SW

do you have any experience with life settlements investing?

You planning on dying any time soon? Viaticals are creepy, unless you're terminal. I haven't really given them much thought.