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What is convertible arbitrage strategy?
Convertible arbitrage essentially involves taking simultaneous long and short positions in a convertible bond and its underlying stock. The arbitrageur hopes to profit from any movement in the market by having the appropriate hedge between long and short positions.
How did Ken Griffin get started?
In 1987, Ken Griffin, a then-19-year-old sophomore at Harvard University, started trading from his dorm room with a fax machine, a personal computer, and a telephone.
How does the Citadel make money?
Market makers like Citadel make money by pocketing the difference between the price at which they buy shares — the bid — and the price they receive from selling them to Robinhood clients, the offer. Other firms in the business are Virtu Americas, G1X Execution Services and Two Sigma Securities.
What is a convertible bond strategy?
A convertible hedge is a trading strategy that consists of taking a long position in a company’s convertible bond (or debenture), and a simultaneous short position in the amount of the conversion ratio in the underlying common shares.
Is convertible arbitrage directional?
This strategy carries interest rate, stock borrow and default risk. Some convertible bond arbitrage strategies combine the above strategies and yet others have directional biases – through their use of hedging – that allow arbitrageurs to capitalize on expected rises or falls in the underlying stock price.
What did Ken Griffin major in?
Biography. Kenneth Cordele Griffin was born and raised in Florida, according to a 2011 profile of him in Chicago Magazine. He attended Harvard University where he majored in economics, graduating in 1989 after three years.
What’s it like working with Ken Griffin?
“If you are early in your career, you are making a grave mistake not being back at work,” Griffin said Monday in a conversation with Bloomberg’s Erik Schatzker at the Economic Club of Chicago.
Who invests Citadel?
Citadel LLC
| Head office at Citadel Center | |
|---|---|
| Key people | Peng Zhao (CEO of Citadel Securities) James Yeh (President & Co-CIO) Gerald A. Beeson (COO) Ben Bernanke (Senior Advisor) |
| Products | Alternative investments Market making |
| AUM | US$35 billion (October 2020) |
| Owner | Ken Griffin (85\%) |
How much money is Citadel worth?
Ken Griffin runs Citadel, a Chicago-based hedge fund firm he founded in 1990 that manages roughly $39 billion in assets.
How much is Citadel worth?
Citadel operates with an estimated $32 billion in investment capital. As of 2021, Ken Griffin’s net worth is estimated to be $10 billion.