{"id":9348,"date":"2008-12-12T00:00:00","date_gmt":"2008-12-12T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"citadel-to-cover-operating-expenses","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2008\/citadel-to-cover-operating-expenses.html","title":{"rendered":"Citadel to cover operating expenses"},"content":{"rendered":"<p><span class=\"Apple-style-span\"><span class=\"Apple-style-span\">Chicago Tribune &#8211; <\/span>Citadel Investment Group is covering &quot;a substantial portion&quot; of its operating expenses this year, a break from passing those costs on to clients, Katie Spring, a spokeswoman for the Chicago-based hedge fund, said Thursday.<\/p>\n<p>&quot;We felt it was the right thing to do.&quot; Spring said, citing Citadel&#8217;s &quot;long-standing relationship with our investors.&quot;<\/p>\n<p>Citadel declined to specify how much of the costs it would absorb, but estimates range from $200 million to $300 million. When management fees were high relative to returns in 2005, Citadel founder Ken Griffin reimbursed investors. The hedge fund will again start charging its standard fees in January.<\/p>\n<p>Citadel&#8217;s two largest funds have suffered losses of almost 50 percent through November. Assets under management total around $13 billion and clients have requested about $1 billion worth of redemptions. Hedge funds typically finance operations by taking 2 percent of assets, then retaining 20 percent of profits to pay employee performance bonuses. Citadel bills investors for expenses, which can represent as much as 8 percent of assets, and keeps 20 percent of profits. Among expenses charged to investors are annual bonuses to Citadel employees, according to people familiar with the hedge fund.<\/span><\/p>\n<p><a href=\"http:\/\/www.hedgeco.net\/news\/news_land.php?i=http:\/\/www.chicagotribune.com\/business\/chi-fri-citadel-dec12,0,2143184.story\" target=\"_blank\"><span class=\"Apple-style-span\">Read Complete Article<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chicago Tribune &#8211; Citadel Investment Group is covering &quot;a substantial portion&quot; of its operating expenses this year, a break from passing those costs on to clients, Katie Spring, a spokeswoman for the Chicago-based hedge fund, said Thursday. &quot;We felt it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[310,75,127,803,2354,4108,130,83,146,435,3269,236,172],"class_list":["post-9348","post","type-post","status-publish","format-standard","hentry","category-syndicated","tag-100-million","tag-bear-stearns","tag-equity-funds","tag-external-managers","tag-fame","tag-larger-companies","tag-management-business","tag-medallion","tag-person-team","tag-settlement-system","tag-thomas-steyer","tag-trillion","tag-ty"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/9348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=9348"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/9348\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=9348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=9348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=9348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}