Investing
Citadel and Its Peers Are Piling Into the Same Trades. Regulators Are Taking Notice
- Overcrowded trades by multimanager hedge funds seen as threat
- Regulators warn the firms could destabilize Treasury markets
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Even Ken Griffin is a little worried.
Multimanager funds like Griffin’s Citadel have come to dominate the hedge fund industry, riding a steady run of outperformance to oversee more than $1 trillion, including a healthy dose of leverage. But the explosive growth has led the industry giants to pile into many of the same trades.