Citadel suspends redemptions from two hedge funds

[Adsos Letter]

Source: Reuters/Forbes

CHICAGO (Reuters) - Citadel Investment Group LLC, a sizable U.S. hedge fund, said Saturday it has halted redemptions from its two largest funds until at least March. The suspension affects the Kensington and Wellington funds.

The decision was "driven by continued volatility in the market," Citadel spokeswoman Katie Spring told Reuters in an e-mail.

The move was announced in a letter sent to investors Friday by Citadel's founder and president, Ken Griffin, and reported by Crain's Chicago Business.

"We recognize how a suspension impacts our investors, especially those with current financial obligations of their own to meet," Griffin wrote.



Read more: http://www.forbes.com/topstories/feeds/reuters/2008/12/13/2008-12-13T200223Z_01_N13483141_RTRIDST_0_CITADEL-REDEMPTIONS.html

[pfitz59]

1. Uh oh....

This is not good....

[Ghost Dog]

2. Now we find out, all over the world, where some of those dominoes are...

lazily, stupidly, greedily 'invested' in non-transparent financial instruments.

News reporters here are today saying there may be at least 3 thousand million €uros (American Billions) lost to such 'investors' in Spain alone. Some wealthy clients of the Banco Santander (especially via Banif) - otherwise a very sound bank, we are told - being the biggest losers so far identified... (ref. in Spanish).

(edit: I refer to the Madoff affair, just to be clear).

[Turbineguy]

3. Spain is where a lot of money

skimmed from the Pilippines goes. Some of the Marcos' kids live there. The weather is nice and it's close to Switzerland (in their case).

[Ghost Dog]

5. Oh, that's not all: Plenty of Saudi Sheiks, for example, Russian oligarchs

and Italian Camorra...

Also, in spite of the civil war and much other history, Spain managed to largely stay out of the last two 'World' Wars, and avoid Revolution (although a Spanish Republican division, the Brunete Division, was apparently the first to re-enter liberated Paris). So, there appears to be still plenty of what we'd (northern Europeans) call "Old Money" in Spain.

[mbperrin]

4. What a clever way to say "We lost your money" without having

to own up. Suspension?

Hmmmm

[madrchsod]

6. greed..no one questioned the returns.

they built their houses on sand

[jetphixer]

7. Why do i go back?

I am wondering why my thoughts keep returning to the Keeting 5 and the Bush debocil of the savings an loan As a person who has dealt with physics all my life i am wondering if there is a hidden formula here who's common demonator is Republican Buit now who would ever think of something like that of our Pres. Mr AWOL I'll just bet its dealing with the other kind of phisic or is that enema?? Humm a lot to ponder b4 sun football..

[alcibiades_mystery]

8. Collapse of liquidity

Liquidity - rapid transformation to liquidity - is of the essence of the financial markets. If you can't find the appropriate counterparty, it's all over.

Madoff should have done the same...:eyes:

[Ghost Dog]

9. Well, he's confessed, hasn't he?

I suppose he (perhaps a "Catholic"?) expects to be forgiven, now. His sons also.

Humm...

[specimenfred1984]

10. Oh no, super rich "philanthropists" will stop giving to charity

Charities they've apparently been supporting with crooked money. Isn't there a name for that, oh yeh FRAUD.

[girl gone mad]

11. This is just dumb.

All they are doing is creating pent up demand on the sell-side so that when redemptions resume it will be a bloodbath.

[sarcasmo]

12. The walls of the rich are starting to crumble, oh how will they cope.