Funds News

Citadel hires portfolio managers for credit, stock teams

BOSTON, June 3 (Reuters) - Hedge fund Citadel, whose flagship portfolio is posting double-digit gains this year, has hired for its investment teams even as many corporations cut staff after the coronavirus outbreak shuttered large parts of the U.S. economy.

Chicago-headquartered Citadel, which invests $32 billion, recruited four portfolio managers from other funds for its credit and equity teams, a Citadel spokeswoman said on Wednesday.

The newcomers will be building teams and hiring associates and their hirings have not been previously reported.

Michael Gorun and Daniel Shatz will join the credit business in late June, working from New York. Both come from Column Park Asset Management, LP, which Shatz co-founded. Citadel is expanding this business after hiring Pablo Salame as head of Global Credit from Goldman Sachs in 2019.

Darryl Pardi joined in April from Point72 Asset Management as a healthcare manager in the Surveyor business.

Paritosh Batra will join in July in Chicago, focusing on industrials in the Ashler business unit. He previously worked at Anchor Bolt Capital LP.

Citadel uses teams of traders to make bets on stocks, bonds, commodities and other securities. Its flagship Wellington fund returned 11.4% in the first five months of 2020 after a 1.3% gain in May, according to a person familiar with the returns. The Standard & Poor’s 500 stock index is off roughly 6% for the year, having recovered ground after a sharp sell-off.

Citadel has three equities businesses: Global Equities, Surveyor and Ashler as well as credit, fixed income and macro trading, commodity and quantitative units.

The new hires are part of an expansion and roughly a dozen others have joined Citadel’s investment teams this year.

Meanwhile more than 40 million Americans have filed for unemployment claims during the pandemic as companies ranging from Boeing Co to Chevron Corp to Uber Technologies Inc cut jobs.

Reporting by Svea Herbst-Bayliss in Boston Editing by Matthew Lewis