- Consumer Confidence Improves But Still Shaky
- US Home Prices Up 5th Month, 2nd Straight Quarter
- Revised GDP Reading Puts Growth at 2.8%; Inflation Tame
- FDIC Fund Falls into The Red, Bair Urges Lending
- Ron Paul's Plan to Audit Fed a 'Serious Attack': Mishkin
- US Economy Mired in 'Form of Depression': Rosenberg
- Strong Banks, Weak Credit: Treasury Rethinks TARP
- Fairfax Lawsuit Keeps Heat on Chanos, SAC's Cohen
- Blog: Behind The Scenes With Warren Buffett
- Busch: The Debt-Interest Rate Paradox
- The Lloyd's Prayer, Leggo My Eggo, Plate Hate & Your Emails
- Buy These 'Competitively Positioned' Stocks: Portfolio Manager
- Behind The Scenes With Warren Buffett
- 'Why the American Consumer Will Keep on Buying No Matter What'
- On Assignment: Europe & Asia
- The L.A. Extravaganza: A Test for Auto Shows
- 8 Stocks That Could Gain With Rising GDP
- 5 Stocks That Benefit from Health Care Legislation: Analysts
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- US Home Prices Up 5th Month, 2nd Straight Quarter
- FDIC Fund Falls into The Red, Bair Urges Lending
- GM's Agreement to Sell Saab To Swedish Firm Falls Apart
- Weak Dollar Is Golden for Mining Companies
- Revised GDP Reading Puts Growth at 2.8%; Inflation Tame
- Wave of Debt Payments Facing US Government
- Buyers Look For Bargains At Luxury Condo Auction
- CA "More Profitable" After Saving Energy: CEO
- China Eastern to Complete Shanghai Air Buy by End '09
Text Size 
Citadel Investment Group, which last year banned redemptions from its hard-hit flagship hedge funds, is lifting those restrictions next month as fund performance rebounds, according to a letter to investors.
In a separate development, Rohit D'Souza, a former Merrill Lynch executive tapped last year to build an investment banking business at Citadel, left the firm Thursday. A spokeswoman confirmed the departure but declined to say why D'Souza was departing after less than a year or if he was fired.
As financial markets crumbled last year, Citadel's flagship Wellington and Kensington funds plunged 55 percent—a bigger drop than the average hedge fund and worse than the broader stock market. Cash-strapped investors responded with a wave of redemption requests.
Yet a 57 percent surge in performance this year, back to about $14 billion, has prompted the Chicago firm to remove the bans and let clients withdraw their money as of Nov. 30, according to the letter, a copy of which was obtained by Reuters. Hedge funds on average were up 17 percent through September, according to Hedge Fund Research.
Reuters first reported in September that Citadel was preparing to unlock the funds' gates. Wellington is the onshore version, and Kensington an offshore version of the same fund.
In series of questions and answers accompanying his monthly letter, Citadel Chief Executive Kenneth Griffin also disclosed that Citadel had responded to last year's losses by shedding hard-to trade assets and boosting the liquidity of its portfolio.
Griffin also said its out-sized investment in online broker E*Trade Financial [ETFC
Loading...
()
], while "quite profitable" was a highly concentrated bet he is not likely to ever repeat.
- Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
- One shopper explains why he gets up at 3am on the day after Thanksgiving to go shopping every year.
- A diet high in fat and sugar might actually be good for your portfolio.
- From the AIG&T to the Merrill Lychee, Jane Wells lists this year's holiday cocktails.
Data is a real-time snapshot *Data is delayed at least 15 minutes