Citadel Investment - Competitors

Citadel Investment Competition

Now Viewing Citadel Investment's competition in: Hedge Fund Management

Recent Developments

Two Hedge Funds Win Seats on NY Times Board - Two hedge funds have each gained a seat on the board of The New York Times Company, the first time the firm has accepted directors nominated by outsiders, according to <em>The New York Times</em>. Harbinger Capital Partners and Firebrand Partners collectively own 19 percent of Times common stock; some analysts say that the appointments averted a proxy fight. The hedge firms want the Times to sell a number of assets and invest in Internet companies.

Credit Crisis Affects Industry Employment - Hedge funds are feeling the effects of the credit crisis, which has caused some funds to close and others to curtail operations, including reducing workforce levels. US employment in funds and trusts was 0.8 percent lower in February 2008 than a year earlier. Average annual industry employment dipped 0.1 percent in 2007 from 2006 levels.

Hedge Funds' Asset Growth Strong in 2007 - Hedge funds ended 2007 significantly stronger than at the year's start. Hedge fund assets increased an estimated 30 percent during 2007, according to Hennessee Group, advisors to hedge fund investors. Hennessee's preliminary estimates indicate growth of 18 percent in net capital inflow and 12 percent from positive fund performance. The estimates don't include funds of hedge funds.

Competitive Landscape

Demand for hedge fund services is driven by the growth of investment capital managed by institutional investors. The profitability of individual funds depends on investment expertise. Large funds can more easily participate in big financial transactions. Small funds can compete effectively through specialized investment strategies. The industry is highly automated.

Full Industry Overview For Hedge Fund Management

Hedge Fund Management Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US funds, trusts, and other financial vehicles, an indicator for hedge fund firms, is forecast to decrease at an annual compounded rate of 2.3 percent between 2007 and 2012.

Funds, Trust Growth Slow

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.