In Chicago, the hedge fund world orbits Citadel. The mega fund is the only one in the city, and has long been considered a training ground for ambitious up and comers. Traditionally, these money makers fall in line, but a new cadre of rising stars has left to start their own firms. Taking out Citadel will truly be a monumental task.
When Ken Griffin on chicagobusiness.com set out to make Chicago’s only mega hedge fund, he brought in talent from all across the world. He brought in physicists, judo instructors, and New York investment bankers. These people all proved their value at Citadel, but have taken their pedigree to work for their own companies.
The most successful of the Citadel spin offs is Magnetar. In May, they sold a minority stake in the company to Blackstone. Blackstone is a New York based asset manager, and the merger between the two helps open a variety of doors for Magnetar. Blackstone provides the hedge fund with a massive influx of capital to fund Magnetar’s ventures. The blog Left Handed Right Mind quotes the CEO of Anchor Bolt Capital as saying that the deal is without a question a good move to expose yourself to new opportunities.
Historically, hedge funds were subject to very lax regulations from the government. In more recent years, the firms have seen increased regulatory scrutiny. They are commonly referred to as alternative investments because the funds tend to place their money in a large number of uncommon places such as foreign currency and energy futures. Some hedge funds were allegedly complicit in the great recession of 2008, and federal regulators decided that it was time to crack down on hedge funds.
Deals like Magnetar’s are highly unorthodox in the world of hedge funds. It decreases the autonomy and control that the staff at Magnetar have. Pavandeep Sethi is a former Citadel employee, and he is the founder and president of Gladius Capital. He says that while he would never sell his firm, he understands why Magnetar would make a deal that led them to better growth. According to him, the devil is in the details for these deals. Galdius has raised 1.6 billion in funds since it was founded in 2009, and while Sethi says he isn’t eager for explosive growth, he is aware that any firm that isn’t growing is dying. For now though, Citadel remains the king of Chicago’s hedge funds, but the new challengers on the horizon could threaten that dominance in the coming years.
Hedge funds are a major part of Chicago’s economy, and one of the biggest aspects of the Hedge fund industry is Citadel. Citadel has risen to prominence over the course of the last decade, and the company is sure to continue to be one of the most successful companies in the hedge fund industry. While Citadel is currently one of the most powerful hedge fund companies in Chicago, many Citadel alums have grown to be extremely successful in their own right. Now it seems that Citadel may be threatened by some of their former members.
Ken Griffin on chicagobusiness.com is the CEO of Citadel, and he has worked tirelessly to ensure that Citadel has become the most successful hedge fund in Chicago. He collected job candidates from all over the world with a huge variety of different backgrounds. While many of these candidates were not the most experienced people in the finance industry, together they were able to form a great team. However, Citadel has grown to be more and more successful in recent years, and as they have grown more successful many of the most valuable names at Citadel have been pried away. These names have been pried away for a wide variety of different reasons. Some of the biggest names were recruited to work at other firms, but some of the biggest threats have decided to go out and start their own hedge funds.
One of the biggest offshoots from Citadel has been the company Magnatar. The company quickly became extremely successful and they recently sold a minority stake of their company to one of the biggest asset managers in the world. This has made Magnatar an even bigger threat to the future of Citadel. While this is on of the biggest threats to Citadel there are many other threats to the company.
While Citadel appears to be falling apart, Ken Griffin is not worried. The company has built a solid foundation that is sure to follow the company for many years to come. Over the years, investors have become used to the idea that Citadel is one of the best companies to work with, as they get high quality returns consistently.
Chicago continues to be the source of many of the most powerful hedge funds. With Ken Griffin headed the powerful Citadel hedge fund, it appears that the company will continue to be one the best hedge funds in the business.
In the last decade Brazil has emerged as a strong and attractive global player. Between 2000 and 2012, the South American country has had one of the fastest growing economies in the world with a GDP growth of 5% each year. As of 2015 Brazil is the eighth largest economy in the world with the seventh largest purchasing power. If the country continues at its current rate of growth Brazil will be the fifth biggest economy in the world by 2025. With these market conditions Brazil is an optimal place for development and investment.
Investors like Zeca Oliveira know that the economy within this country performs above all other South American countries. In addition Brazil is expanding its presence throughout the world and has become known as an increasingly stable economy. As of 2011 67% of this growth is from the service sector, 27% industrial and 5% agricultural. These industries are considered to be well developed in Brazil and offer a prime opportunity to those who are seeking an excellent return on their investments.
Brazil is also experiencing a population growth in their urban areas. The southern regions of the country are seeing the most growth including the cities of Sao Paulo and Rio de Janeiro. The redistribution of the population to the urban areas has created an environment that is beneficial for locals and foreigners. Zeca Oliveira understands that the increase in population has resulted in the need for additional development and services. Foreign investments are also encouraged and by the Brazilian government. Investments such as a land or property can be purchased without any additional conditions.
In addition to the real estate market Brazil also has a significant consumer base. The improvement in the infrastructure and political climate has led to a rapidly developing middle and upper class. These individuals have access to cash and additional financing. The increasing spending power of the Brazilian people can lead to many great investment opportunities. European and American products are also in high demand within the country and can be a beneficial to those who are seeking to build businesses in Brazil.
These factors are all excellent reasons to consider Brazil as an investment opportunity. The growth within the economy provides a diverse amount of opportunity including agriculture, real estate and infrastructure. Prior to making an investment carefully consider the regulations and the investment will have on the natives of the country. Connecting with a knowledgeable Brazilian native can also improve the results of investing in Brazil.