Ken Griffin has built a two-headed profit monster at the center of the global financial system.
Citadel, Griffin's hedge fund, is minting money. With significant investments in oil and gas and commodities, Citadel booked $16 billion in profits in 2022. It is now the most profitable investment firm in history, topping Ray Dalio's Bridgewater.
But hedge fund investments are only part of Citadel's rapidly expanding portfolio.
The other front of Griffin's empire, Citadel Securities, the high-frequency market maker, handles about $463bn in trades per day. For perspective, this amounts to roughly one in every four trades, or 25% of the entire market. CS will soon enter America’s $10tn corporate bond market.
As it gobbles up an ever-greater part of the global financial system, Griffin's two-headed monster appears to be growing in both reach and ambition. It is unclear what can stop them.
Citadel was founded fifteen years after Bridgewater (1975). ↩︎