Citadel Asset Management : Investment Strategies

Innovation and Performance

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 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 proven technology and information infrastructure.

Equities: Equities combines detailed, fundamental stock selection with a rigorous portfolio construction and risk management framework and focuses on 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. Investment portfolios are 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.
Global Fixed Income: Global Fixed Income deploys capital in the developed interest-rate markets, focusing on liquid products including nominal and inflation-protected government bonds, interest-rate swaps, futures, options, and Agency mortgage-backed securities. Strategies are primarily concentrated in the G7 interest rate markets. Global Fixed Income employs a combination of macroeconomic analysis, quantitative modeling, and rigorous portfolio construction to identify and capture opportunities. Additionally, Global Fixed Income contains a dedicated Non-Agency residential mortgage effort which invests in the full spectrum of U.S. residential mortgage-backed securities (RMBS) and related financial instruments within the securitized products asset class. Each portfolio manager in Global Fixed Income has a disciplined approach to their specific domain, and the team jointly identifies potential investments across these products and regions through a collaborative investment process.
Fundamental Credit: The Fundamental Credit strategy combines detailed fundamental research and quantitative portfolio analysis to invest primarily in single-name credit instruments in a 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 a series of systematic credit trading strategies within a rigorous quantitative framework and invests in credit instruments such as bonds, single-name CDS and index CDS across the US and European credit markets. These strategies are organized into two core approaches: Algorithmic Credit Trading and Credit Arbitrage. Algorithmic Credit Trading seeks to take advantage of relative mispricings across various credit instruments through the use of quantitative modeling. Credit Arbitrage is a relative value strategy designed to capture pricing inconsistencies between credit indices and their constituent parts. Across both strategies, the business capitalizes on opportunities in the market by leveraging real-time analytics and disciplined execution.