Ken Griffin is the young billionaire according to website insidermonkey.com, philanthropist and founder of Citadel. Kenneth is also the CEO of Citadel, and he’s very active in its every day operations. He is only 46 years old, and he already has a net worth of over $6.6 billion as of spring 2015.
He started investing early on in life after reading a Forbes article while he was attending Harvard in his freshman year. The next year he decided to found his first hedge fund that concentrated on convertible bond arbitrage which is a market neutral investment strategy used by hedge funds when they make a short sale on an issuer’s common stock and buy convertible securities at the same time. His fist hedge fund was financed with around $265,000 from friends and family. His grandmother reportedly invested the most money. Ken went so far to make his hedge fund a success that he installed a satellite link in his room so that market numbers could be delivered in real time. His methods were what helped his capital weather the storm of the stock market crash in 1987. Before graduating with a degree in economics in 1989, he was able to to start a second fund due to his success with his first, and he was managing over a million dollars while still in college.
When Ken Griffin graduated from Harvard he began a business relationship with Frank Meyer. Frank was a fellow investor and the founder of Glenwood Capital. He gave Kenneth $1 million dollars. Frank was extremely happy with the results that Ken was able to provide. It was reported by the New York Times that Ken was able to get Frank a 70% return on his $1 million dollar investment which leaves one to wonder just how much Ken made off of that $1 million to be able to return the initial investment plus 70%.
Ken began his life’s work rather quickly after he graduated from Harvard and worked with Frank Meyer because in 1990 he started Citadel with $4.6 million. Today, Citadel is one of the world’s leading asset managers, and it manages over $26 billion dollars worth of assets. Citadel Securities is the other branch of Citadel, and it’s known as one of the top international market makers. Citadel Securities trades a number of products including equity options, equities and interest rate swaps for institutions and retail clients. Citadel also holds the distinction of being in a 3% elite category of hedge funds that are over 20 years old. The asset managing giant employees over 1400 people worldwide, and it has offices in North America, Europe and Asia with its primary headquarters in Chicago, Illinois.
Just to recap about Ken, he started his very first hedge fund during his second year in Harvard, and before graduating he was managing two funds and $1 million between them. He graduated from Harvard with a degree in economics from Harvard in 1989, and then he went on to found Citadel. Kenneth Griffin is undoubtedly the model for maximizing potential.