After $1 Billion Loss, Senior Citadel Manager Derek Kaufman Steps Down
ByA senior manager at the hedge fund Citadel has left after losing $1 billion of investors’ money last year.
Derek Kaufman, the head of global fixed income and a member of Citadel’s portfolio committee, resigned two weeks ago, according to Katie Spring, a spokeswoman for the firm. His trades are being wound down and liquidated, she added.
Mr. Kaufman ran a portfolio for investors that placed bets on currencies, interest rates and sovereign bonds around the world. Those trades included complex and nuanced wagers on the direction of interest rates. He also oversaw a team of 18 managers within the Global Fixed Income Fund, which manages $4 billion.
When the market turned against Mr. Kaufman’s trades last year, there was little he could do to stanch the losses, said a person briefed on the investments but not permitted to speak publicly. Over all, the fund gained 0.75 percent in 2014, the person said…
After $1 Billion Loss, Senior Citadel Manager Derek Kaufman Steps Down
