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You’ll never leave: Citadel investor terms updated to prevent outflow of capital

Annoy Ken Griffin - Share This

Bloomberg reports that Citadel investor terms for withdrawing money from the company have been updated, reducing the amount that investors can withdraw without fees to just 6.25%, where previously it had been 10%.

Whilst Citadel is not the only firm which charges investors a fee for pulling out their cash, this is the best sign yet that Ken Griffin’s companies, with their repeated violations of securities laws are under increasing pressure.

Citadel investor terms increase fee-free withdrawal to 4 years

What this means in practice is that for many investors, it would take them a total of 4 years to remove their money without paying whopping great fees to get hold of their own cash. Imagine you’d invested $1M in Citadel, because you thought it was a safe pair of hands. Not only are you now finding out that they’re balls to the wall against the dumb money Apes Army, but you’re also going to have to pay a massive premium to get your own capital because you can see the ship sinking.

It gets better, reports Bloomberg. If you as an investor exit, even paying the huge fees that Citadel will charge you for getting YOUR money out when YOU want it, you might not be able to get back in again, as Citadel have closed the door to new investors.

This is a real shame, and we are obviously saddened by the news that billionaire Ken is resorting to the same tactics he used back in 2008… Right around the time of the last massive financial collapse. Not that there’s any correlation whatsoever, as the economy is in tip top shape here at the end of 2021, and inflation is purely transitory, right? Nope, the reason the Citadel investor terms have been updated like this has nothing to do with them needing to keep as much liquidity in the company now because they’re about to get the squeezing of a lifetime.

That’s right. In 2008, Business Insider went with this wonderful headline almost 13 years to the day of publication of this article, which we think needs an airing:

Citadel refuses to give investors their remaining cash back
From Business Insider Dec 14, 2008

Let’s just take a moment to digest the leading paragraph from this Business Insider article, for no other reason that it’s absolutely fucking legendary.

Citadel has vaporized almost 50% of its clients’ capital so far this year.  Now, after insisting for months that its liquidity is strong, the firm is adding to the pain by refusing to allow its clients to withdraw their remaining funds until at least the end of March.

Now, to be slightly fair to Kenny (and you know how much we loathe giving this snake a break for anything) we would point out that it’s not just Citadel that are reducing their caps on fee-free withdrawal (if you can get out at all of course).

There are plenty of other hedge funds which are doing the same, including Schonfeld Strategic Advisors, Millenium and Hudson Bay Capital. But here’s the really interesting part for us in the Ape community. The article says that it makes sense for the Hedgies to be more restrictive because that’s just good business, and helps them do better project planning. Righto.

The desire for longer-term capital makes sense. Hiring and retaining multiple investment teams is easier if staff can be assured that the money won’t be pulled over a matter of months. It also helps the hedge funds better plan their spending on technology and other infrastructure.

Investors are complying because, in an industry where many funds have underperformed, these managers produce some of the steadiest returns.

We offer a different possible analysis which is that Hedge Funds are getting utterly REKT by a combination of over-leverage, massive inflation, and of course being taken on by the apes, which has forced them to significantly eat into their war chests so they can get the required amount of naked shorts to keep on smashing down retail investors who are looking to send a message to Wall Street and the government that they aren’t putting up with this manipulative shit any more.

Wouldn’t it be a shame if….

It would be a hell of a shame if the apes continued to target hedge funds on LinkedIn and other places, informing investors of the position that they’re in. Not that we condone that sort of thing. Nope. Although it does have to be said if you are on the other side, say you’re Ken Griffin for example, and you wanted to put out a hit piece on a company or group of people, you might be tempted to make a call to the management at Yahoo Finance or Motley Fool, and they will be happy to spring into action to spin whatever you want.

6 reasons to invest in wall street hedge funds
It would be a terrible shame if Wall Street Hedge Funds clients all started seeing memes like this….

Apes regard this fight between the Hedge Funds and retail as a war. Many of us have completely given up on the idea that the regulator will do anything to enforce their own rules, or uphold their mandate for existing, so Apes have decided to take their own action, and that’s by buying, holding and refusing to sell back these heavily shorted stocks, as well as sites like this one which seek to expose and ridicule the sheer and obvious market manipulation that is taking place in the market. The fact that we are seeing citadel investor terms being updated to make it harder for investors to pull their money out should be very telling indeed.

Annoy Ken Griffin - Share This