Citadel Suffers

Looks like rumors I heard about Citadel two months ago were prescient of the releases today, but not for the reasons I had heard. According to Bloomberg:

Citadel Investment Group Inc.'s biggest hedge fund fell as much as 30 percent this year, because of losses on convertible bonds, stocks and corporate bonds, said two people familiar with the Chicago-based firm.

Am curious to see how their energy books have been impacted by the fall in Kensington. The article does state that the options market making arm of Citadel, which is very much involved in the OTC crude options market, returned 30% so far YTD.

One reason why Citadel is, and I bet will continue to be, a powerhouse in the industry:

``When the markets change, we don't accept lower returns,'' said Mike Pyles, Citadel's head of human resources in a 2005 interview. ``We aren't that kind of firm. We expect the manager to go figure out how to make money in the new markets. We make no apology for it.''