Citadel Securities is run by a Beijing-born data genius named Peng Zhao, 40. The investment by Paradigm, which specializes in crypto, underscores Griffin’s intention to become a leading market maker in the fragmented but fast-growing cryptocurrency trading business. The investment valued the brokerage at $22 billion, increasing Griffin’s net worth by $5 billion in the process. Though it collects a fraction of a penny per share on each trade, Citadel Securities brought in $7 billion in revenue in 2021, and for the first time Griffin agreed to share part of his empire with outsiders, selling a 5% stake to two blue-chip venture capital firms, Sequoia and Paradigm. As a result, Citadel Securities is expanding into new markets and growing more rapidly than Griffin’s hedge fund. Griffin employs smart mathematicians and scientists who harness cutting-edge technology-predictive analytics, machine learning and artificial intelligence-to analyze huge amounts of data in real time. trades, 40% of retail trades and more than 30% of stock options volume. When it comes to equities, the firm accounts for more than 25% of all U.S. What has driven those returns is his close study of macrotrends and his uniquely powerful position at one of the fulcrums of global finance.Ĭitadel Securities, Griffin’s other business, is one of America’s largest market makers. He’s had only two down years in the past 31, earning his investors an average of 19% per annum. Griffin is a big-picture guy whose track record is nearly unparalleled on Wall Street. “Have we laid the seeds for the setting of the American era of technological superiority?” Griffin asks. De-dollarization by a China-Russia-Iran-Brazil trading bloc could easily morph into the exclusion of American companies and investors from fast-growing markets. There will be serious repercussions, with Russia, China and others seeing no option but to diversify away from the greenback. The unprecedented moves by Western powers to shut off Russia’s access to capital markets heralds the weaponization of the dollar, he says. He predicts that the severity and character of the sanctions the West has imposed on Russia will have a long-lasting impact on the dollar-based global financial system. Longer term, Griffin sees a flock of black swans looming. Citadel founder and CEO, Ken Griffin: "The catastrophe in Ukraine is a giant unforced error." AARON KOTOWSKI for Forbesīut that’s short-term thinking.
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