Citadel Winner
A handful of hedge fund firms continue to captivate the market as fan favorites among CIOs. The firm’s September announcement to return some of its capital, particularly placed in fund of funds, resonated well with investors. “Managing too much money can hurt performance,” said one CIO.

Citadel takes alignment a step further, whereby about 20% of its fund’s capital comes from its partners/employees, who pay the same fees/costs as their clients. Few, if any, hedge fund managers pay management fees to invest in their own funds. This reinvestment allows Citadel to dedicate resources to its intellectual capital, risk management, and technological infrastructures.

The firm’s relatively recent centralized interactive risk center and the rollout of a dynamic client portal this year illustrate its approach to governance and commitment to transparency. Finally, in January, the firm hired veteran Joanna Welsh, who brings more than two decades of industry experience, as its chief risk officer.

Hedge Funds Finalists

• Alantra

• D.E. Shaw

• Renaissance Technologies

• Two Sigma