Balyasny Bans Hiring From Citadel Unit: Report

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by Tyler Durden
Thursday, Nov 18, 2021 - 10:51 AM

Is Ken Griffen becoming persona non grata on Wall Street?

According to Bloomberg, which cites an internal memo, multi-strat hedge fund Balyasny Asset Management which had some $160BN in regulatory AUM according to its latest Form ADV, has imposed a ban on hiring from rival hedge fund Citadel’s Global Fixed Income business.

According to the memo, the investment firm told headhunters earlier this month not to recommend potential staff from the Citadel unit; the ban extends to anyone who works there or supports the business, as well as those that worked for the unit after May 15 but have since left.

While Balyasny did not provide a reason for the "unprecedented" decision, this was not the first time we have heard rumors that former Citadel staffers have been "undesirable", although that is certainly not a uniform policy across the buyside. One wonders if the hiring ban may have something to do with the recent turmoil across the rates space, where as we detailed Citadel - along with Millennium and Poin72 - is one of the largest names in the cash/swap basis trade, which the hedge fund finances using the repo market. Indeed, as shown below, Citadel is the fund which traditionally sports the highest regulatory leverage of any multi-strat fund, which in 2021 was a staggering 7.4x.

In any case, as Bloomberg notes, "the move cuts Balyasny off from a fertile hunting ground for traders at a time when hedge funds’ talent war has reached feverish heights." Multi-strategy funds such as Millennium, Balyasny and Citadel rely on dozens of teams of traders to bet across asset classes and regularly hire to expand into new areas or strengthen expertise.