Citadel hedge fund traders share £70 million pay day

Traders at hedge fund giant Citadel split a £70 million-plus pay pot last year after a surge in profits.

The Chicago-based firm, founded by billionaire trader Ken Griffin, has $25 billion (£20 billion) of assets under management globally and a large London presence to help run its funds range.

Citadel Investment Group Europe, the UK subsidiary, saw pre-tax profits rise 26% for the year ending December 2015 to £102 million.

Of this, £74.6 million was divided among a 13-strong partnership of Citadel’s top traders, and the rest was paid to the US holding company Citadel.

The traders’ payday underscores the huge gains on offer for investors working at hedge funds, which have seen an influx of talent from big banks due to more stringent pay rules in banking.

Citadel recruited an extra 16 money managers this year, taking its roster of investors to 86.

The additional traders helped take revenue at the UK unit to £194.1 million from £161.4 million last year.