Indiana Grain Company, LLC

Posted: 09/18/09

By: tomgrisafi

Ken Griffin has hired 70 people to operate a full-service investment bank, which he says will compete with Goldman Sachs Group Inc. and Morgan Stanley. He started three hedge funds, which are being marketed around the world by a six-person team. And his flagship funds, Kensington and Wellington, have returned about 52 percent through Sept. 1, in part on a rebound in convertible bonds.

“It was an incredible time in market history,” said Griffin. “Today our team is solidly focused on the future.”

His shift in investment strategy, he said, involves relying more on fundamental research to make trades than on bets based on the historic relationships between two securities.

That may not satisfy some of the 300 or so clients in Kensington and Wellington, which would have to return an additional 46 percent each to make investors whole and to collect performance fees.

Citadel suspended redemptions last year as investors sought to pull about $1.5 billion in assets. It’s set to release $250 million at the end of this month, and Griffin said he expects more than $500 million will be returned to investors by the end of the year.

Source: Bloomberg

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