I found an article recently on the blog Left Handed Right Mind about Ken Griffin. The article was an interesting read that discussed the hedge-fund world in Chicago and those who are major players in it.
Ken Griffin on chicagobusiness.com is the Chief Executive Officer and founder of Citadel, the only mega-hedge fund that exists in the Chicago area. When Griffin started his company he knew that he only wanted the best of the best to come work for him. That led Griffin to recruiting employees from around the world. Griffin staffed his firm with the likes of a former investment banker from New York, a physicist from Russia, and a judo instructor. He saw potential in the people he hired. One-by-one, those that Griffin had handpicked began to break away in order to start their own firms, effectively becoming rivals to their mentor.
Despite the new competition on the market, Griffin and Citadel are still heads above the rest. Griffin had managed to build such a prestigious firm that others are going to have to really work to reach their level. The only hedge-fund company coming in a close second to Citadel currently is Magnetar. Currently Magnetar has $14 billion under their management while Citadel is nearly double at $26 billion. It is speculated that midsize firms that manage over $1 billion could be on the rise and slowly make their way to the top with steady growth.
Hedge-funds no longer have the intake of money like they used to years ago. Money is flowing into them at a much slower rate due to reasons such as the recession. Not only has the money flow slowed down, but regulations are at an all-time high. Fund managers are being required to be more compliant with the regulations that are set in place, unlike the past. More and more, the firms that have branched off with former Citadel employees are looking to reach the next level. They have their eyes on Citadel and hope to reach that legacy one day.