Citadel battling at the rampart

What is a hedge fund firm like Citadel to do? It's top two funds--Kensington and Wellington--each fell more than 50 percent in 2008. Both were forced to clamp down on redemptions. Such losses would likely have proved fatal for smaller funds. Dow Jones suggests that Citadel benefits from its heft. Even as it operates below the high water mark on a lot of assets, it seems to have enough capital to continue. Not all funds have been able to do that.

Citadel scored points when it gave up about $300 million in fees during losing months in 2008. You have to wonder if it will attempt something similarly dramatic, like following the lead of Renaissance Technologies' James Simons and give up all management fees for 2009, whether the funds rebound or not. That would certainly send a message.   

For more:
- here's the Dow Jones article

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