Innovation and Performance
Investment Strategies
Our Asset Management business deploys capital through multiple investment strategies across the world’s major markets. Our strategies are developed by an experienced team of skilled professionals who bring insight to bear from multiple industries. We conduct fundamental research and quantitative analysis to develop ideas that we make actionable through our proprietary modeling and trading tools. And we execute our ideas with the systemic assurance that comes from dedicated risk and liquidity management and a best-of-class technology and information infrastructure.
Equities
Equities combines detailed, fundamental stock selection with a rigorous portfolio construction and risk management framework. Equities seeks to be Beta-neutral (i.e., non-correlated with investments in stock market indices) on a daily basis, and primarily invests in liquid equity markets. The investment process is driven by detailed, bottom-up company analysis. Equities seeks to generate alpha by identifying out- and under-performing stocks in each sector team’s universe. The group is organized into seven industry sector groups: Communications, Media and Entertainment; Consumer; Energy and Utilities; Financials; Healthcare; Industrials; and Technology.
Convertibles
The Convertibles strategy applies a differentiated approach that combines inputs from Citadel’s proprietary capital structure model with fundamental insights. It yields a diversified portfolio, composed primarily of U.S. and European holdings, that is backed by the firm’s deep experience in managing convertibles through multiple market cycles.
Energy
Energy encompasses Citadel’s activities in the North American natural gas market and European gas and power markets, as well as its activities in the global crude oil and refined products markets. The Energy team combines fundamental market expertise with quantitative analytics to identify directional and relative value investment opportunities.
Macro
Macro deploys capital across global macro themes informed by macro-analysis and technical perspectives. These themes are expressed through directional and relative value investment strategies primarily across G20 and liquid emerging markets, fixed income, currency and equity securities and commodity markets. The team leverages fundamental analysis and quantitative models through a dynamic and disciplined approach.
Rates
Rates invests primarily in liquid fixed-income products, mainly in G10 countries, either through direct investments in government bonds and agency mortgage-backed securities or through derivatives such as interest-rate swaps, futures, options, repurchase agreements, and reverse repurchase agreements.
Fundamental Credit
The Fundamental Credit strategy combines detailed fundamental research and quantitative portfolio analysis to invest primarily in single-name credit instruments in a beta-neutral, relative value framework. Fundamental Credit is organized by industry sector groups and seeks to maximize alpha by isolating idiosyncratic credit movement based on underlying issuer-specific credit fundamentals and catalysts.
Quantitative Credit
Quantitative Credit deploys capital through two main strategies: Credit Arbitrage and Structured Credit. Credit Arbitrage is a relative value strategy designed to capture value primarily based on the potential differences in value between bonds and CDS and fixed income indices and their constituent parts. Structured Credit focuses on tactical trading opportunities across fixed income index tranches.
Mortgages
Mortgages primarily invest in a broad range of non-agency residential mortgage-backed securities (RMBS), whole loans and related financial instruments within the mortgage asset class. Strategies are developed by rigorous fundamental research and analytics and supported by proprietary modeling, trading tools and information management infrastructure.