CITADEL FIRING MANY STAFF RIGHT AROUND DOJ PROBE

Ken Griffens Citadel has recently let several portfolio managers and analyst go during the Surveyor capital unit shakeup. According to ones familiar with the matter more than half-dozen portfolio managers and even more analyst departed this unit. In 2021 the head of the entire team of Surveyor capital Todd Baker also departed after around 16 years in the firm. The interesting thing is this took place just shortly before the federal probe came to light in November. It’s unknown whether or not why those in the firm departed the unit when they did according to Bloomberg.

Citadel has been in the news quite a bit since the 2021 meme stock run ups. Melvin Capital which has also been in the news a lot in the last two years was one of the biggest losers amid the meme stock mania back in Jan 2021. Melvin was hit hard shorting gamestop among others and its steep losses once prompted Citadel and Point72 to infuse close to $3 billion into Gabe Plotkin’s hedge fund to shore up its finances. This cash infusion was later asked to be returned. Citadel earlier this year sometime in January asked to redeem half the money the firm along with its partners have left in Melvin’s hedge fund, after originally halving their investment late last year, as Melvin capital hit with up double-digit losses for the second January in a row, people familiar with the matter said. Melvin suffered a 39% loss in 2021 after the GameStop short squeeze.

The DOJ continues to seek more information on this recent probe into hedge funds, short sellers and more. It is only a matter of time until we have more information on what is truly going on behind the scenes.

READ MORE: PROSECUTORS LOOK INTO RACKETEERING CHARGES INVOLVED IN SHORT SELLERS PROBE

Total
0
Shares
%d