Kenneth Griffin is one of the youngest and most successful hedge fund managers in the investment capital industry. Acting as the CEO of Citadel, Ken Griffin has won numerous industry awards for his prudent and successful investment style as a hedge fund manager. Unlike many of his contemporaries, Kenneth accumulated initial investment for his hedge fund by taking loans from his family.
At first, he was only able to raise $265,000 for the hedge fund. Despite the relatively small amount of capital, Ken Griffin was determined to succeed by investing in funds that were less risky. Perhaps, his success is attributed to the safer investment style because many of his close associates lost billions of dollars in 1987, when the stock market crashed. On the contrary, Kenneth Griffin was only among very few hedge fund managers who were able to survive using intuitive techniques. For instance, Kenneth installed a satellite link at his home to get the real-time market data enabling him to proactively react to changing market conditions. In 1987, he was only managing under $1 million US dollars that included investments from his friends. However, his success during the stock market proved his prudent investment style, which also proved instrumental in getting additional capital for his hedge fund.
Just one year after the stock market crash of 1987, Kenneth was able to acquire $1 million from another well-known investment manager, Frank Meyer. Frank trusted Kenneth Griffin because Kenneth had proved his mettle by stabilizing his investments during the crash of 1987. In fact, Kenneth exceeded expectations of Frank Meyer by returning over 70% of the initial investment in the first year. Building on his success, Kenneth started his own investment capital firm after graduating from Harvard in 1989. The new firm, Citadel, was built from $4.6 million dollar employing less than 10 employees. However, in just eight years, Citadel raised more than $1 billion dollars becoming one of the most successful hedge fund firms. At the time, it employed over 100 employees and Kenneth Griffin was regarded as one of the most influential people in the world of finance.
Top Financial Firm
By the start of Millennium, Kenneth was already regarded as one of the foremost financial advisers who frequently appeared in the coveted list of Forbes and Fortune magazines. By 2015, the capital investment firm, Citadel, is also regarded as the most successful firms in the hedge fund industry. In reality, the success of Citadel is attributed to the financial acumen of Kenneth Griffin and the induction of friendly culture within the company. In March 2015, Great Places to Work Institute included Citadel in the list of top companies to work for. The positive attitude of Citadel employees is attributed to numerous perks, work-life balance, and social activities. Apart from his personal success, Kenneth Griffin also contributes heavily to philanthropic cause. Kenneth has also donated more than $500 million dollars for various social causes. It also included $150 million donation to his Alma-matter, Harvard University, which was the largest ever single donation at that time. He continues to reside in Chicago overseeing investment activities of Citadel.