Citadel's Surveyor Capital PM Jack Woodruff to start his own firm

Link

It would be interesting if anyone knew a little bit more about the size of the book, type of strategy he ran (any industry preference for example), etc. inside of Citadel, but as the article says, he has been doing extremely well.

First big name spinning out on his own in 2019 as far as I've seen and looks like Ken Griffin will be putting some money into the firm as well. Will be interesting to see the size of his new fund and how many (if any) people he'll be able to take with him. I'll try to update this with additional information as I see it.

UPDATE - 1/18/2019
Citadel axed L/S portfolio manager Adam Wolfman and his team from Surveyor, which is also losing Jack Woodruff
Link [BI Prime]

Haven't read the full article (don't have BI Prime), but assuming this is related to performance given Citadel is letting him go. Will continue to update as I see anything.

UPDATE - 3/7/2019
Citadel to close Aptigon stock unit, Felder leaves
[Link] [https://www.reuters.com/article/us-hedgefunds-cita...
Citadel plans to shut down its Aptigon Capital equities unit two years after launch it. Additionally, the firm is parting ways with the unit's chief, Eric Felder.

Comments (14)

Jan 13, 2019

I interviewed with the team and know quite a bit about them, but ultimately didn't finish the process as I didn't think culturally it was what I was looking for at that time.

He runs a consumer long/short book, the biggest equity book at Citadel. He has 3 PMs under him that will likely continue to run the fund (unless they go with him). Huge team (Jack, his sub-PMs, analysts, associates), I think maybe $3-4bn gross AUM. Really smart people working with him and his process is intense, so if they continue to carry that forward the team should be fine.

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Jan 13, 2019

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Jan 13, 2019

Appreciate all of the context - also agree will be interesting to see if any of his juniors (didn't realize he had so many) will be able to leave with him or what kind of non competes they signed

Jan 23, 2019

I assume you mean global consumers?

Remember, the grass is always greener on the otherside because it's fertilized with bullshit.

Mar 11, 2019

When you talk about his process being intense, what are you referring to? Time spent on ideas, type of research, etc.?

Jan 13, 2019

Legendary in pod world. Biggest consumer PM at Citadel. I know some of his juniors and seniors are leaving with him, but not sure if its all of them. There's no way standard Citadel non-competes would allow that but it seems he has Ken's blessing.

Standard Citadel style: very short-termish, with the juniors ultra sector-focused. Would guess he tries to do something like what Holocene has done

Jan 15, 2019

Edited

Jan 13, 2019

Thanks for the additional context!

Jan 13, 2019

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Jan 16, 2019

what's "lights out?" 20% returns YoY? Thanks.

Most Helpful
Mar 10, 2019

sonibubu had it mostly correct.

Really good pod within Surveyor Capital. Had one of the biggest teams, if not the biggest. Really, really impressive track record. Seems like he has Ken's sign off, because he is taking his team with him and historically, Ken never lets anyone go.

In terms of performance, really hard for people to understand if they haven't worked within citadel's strategy. There is a lot of leverage involved, so they have a target for a team, which is low, but by the time it gets to unleveraged investor level, its 20% return. He was regularly doing twice the target, so 40%+ for investors after all the leverage. Really, really impressive!!!

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Mar 12, 2019

Good grief - over how many years?

Jan 13, 2019

I think you don't understand Citadel's strategy.

It is literally impossible for anyone to put up even a single 40% year there. Returns are mediocre at the PM level and solid at the fund level b/c it is levered 8x.

His target was probably low single digits on gross, or what a normal fund would think of 6-8%. Twice that would be 12 - 16, which is actually insane in a market/factor neutral pod.

Mar 13, 2019