Citadel Investment Group Stamps Out Rumors

Citadel Investment Group told FOX Business that any rumors about liquidation, Fed intervention, or forced selling are “categorically false.” Rumors swirled that both the Federal Reserve and U.K. Financial Services Authority visited Citadel’s offices today, discussing how to deal with a potential collapse of the $20 billion alternative investments giant.

The spokesperson also said the Chicago-based hedge fund maintains 30% of its capital in cash. The recent market turmoil has been rough for hedge funds with many of them reporting record losses. Citadel has taken a hit and has reported returns that have dropped 26% to 30%, according to the Wall Street Journal.

Earlier in the month Kenneth Griffin, head of Citadel, sent a letter to investors saying September was the "single worst month, by far, in the history of Citadel. Our performance reflected extraordinary market conditions that I did not fully anticipate, combined with regulatory changes driven more by populism than policy."

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