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Ken Griffin's Citadel just hired a big-name Morgan Stanley trader

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Nicola White

Ken Griffin's Citadel has hired a top trader from Morgan Stanley.

Morgan Stanley's global head of rates electronic trading, Nicola White, is joining Citadel Securities as global COO for fixed income, currencies and commodities, the firm has confirmed.

"She has a broad and varied skill set that's going to help us grow the business further," Paul Hamill, Citadel Securities' global head of fixed income, currencies and commodities, told Business Insider.

"She's extremely talented and we're very thrilled to have her join us."

Bloomberg first reported that White was leaving Morgan Stanley for Citadel.

White joined Morgan Stanley as a software developer for the mortgage-backed bond business in 2003 after interning with the firm in 2002, according to a profile on Morgan Stanley's website.

She has developed real-time mortgage pricing software, traded government bonds, and worked with clients and market structure in a COO role, according to the profile.

Citadel in 2014 hired Hamill from UBS to develop its fixed-income and credit trading division.

The firm wants to compete in businesses where investment banks are pulling back. It began trading credit-default swaps earlier in 2016.

"Certain changes in market structure over the last several years have created a landscape where firms like us can enter a market and compete with traditional investment banks, and interest rate swaps trading is a good example of this," Hamill said.

"The banks are pulling back and some are even getting out of a lot of these businesses as many lack the technology or the risk appetite needed to compete, and that pullback coupled with some of the regulatory changes impacting market structure have created a great opportunity for us to serve investors."

SEE ALSO: Billionaire hedge fund manager Ken Griffin dropped $500 million on 2 contemporary paintings

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A handful of hedge fund managers earned a combined $7.4 billion last year

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Ken Griffin

Institutional Investor's annual list of the top-earning hedge fund managers is out, and the sums involved are astronomical.

Ken Griffin of Citadel ranks highest, having earned $1.7 billion in 2015. Jim Simons of Renaissance Technologies also earned $1.7 billion, while Ray Dalio of Bridgewater earned $1.4 billion.

The top five hedge fund managers earned a combined $7.35 billion. $7.35 billion!

The top 25 took home close to $13 billion. That works out at an average of more than $500 million each.

The list seems incongruous with a challenging year for many hedge funds.

As Alexandra Stevenson over at The New York Times points out, some of those included on the list actually lost money for some of their investors last year.

At Bridgewater, for example, the All Weather fund was down 7%. Bridgewater's other funds did deliver returns for investors, though.

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The Citadel is denying a Muslim student's request to wear a head covering

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France muslim women hijab

A Muslim student will not be allowed to wear a hijab with her uniform at the Citadel military college in South Carolina should she decide to enroll this fall, the school's president said on Tuesday.

Lieutenant General John Rosa, the president, said the public military college recognized the importance of individual religious beliefs but could not grant the exception to the standardized uniform considered essential to its learning goals.

"Uniformity is the cornerstone of this four-year leader development model," Rosa said in a statement. "This process reflects an initial relinquishing of self during which cadets learn the value of teamwork to function as a single unit."

Rosa said the student's request to wear the headscarf was given "considerable review" by the college in Charleston, and he added the school hoped the admitted student would still enroll.

The student was informed of the decision Tuesday morning and has not said whether she will attend, Citadel spokesman Brett Ashworth said in a phone interview.

Some students and alumni had spoken out against allowing the exception to be made, citing the military college's emphasis on uniformity in apparel and privileges.

Citadel students are required to wear uniforms furnished by the college at nearly all times except when the corps of cadets is furloughed or a cadet is on leave, according to the college's website.

Ashworth said the Citadel allowed an exception to the uniform requirement several years ago when a cadet requested for religious reasons to wear long pants and a long-sleeved shirt for physical fitness training.

Requests for religious accommodations are handled on a case-by-case basis and are commonly made for prayer and dietary needs, school officials said.

"We do everything we can to support our cadets," Ashworth said. "We allow cadets prayers time. We've released cadets on a Friday night or a Saturday night or to miss an inspection for a religious service."

 

(Reporting by Harriet McLeod; Writing by Colleen Jenkins; Editing by Marguerita Choy)

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10 tips for new Wall Street interns from hedge fund giant Citadel

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ken griffinSummer is here, and that means a flock of eager students are about to start an internship on Wall Street.

Most have been though the usual drill: networking with alumni, impressing recruiters at info sessions and career fairs, and trying to nail tricky interview questions.

Wherever you're coming from, it's time to get organized and know how to stand out from the rest of the extremely competitive pack. 

Hedge fund giant Citadel, which frequently posts "stumpers" on its careers Twitter and apparently has a strong #UglySweater game, recently published a checklist for new interns:

1. List your goals

Write down what you want to get out of the internship before your first meeting with your manager.

2. Identify milestones

Develop goals with your manager for projects to tackle and skills to master.

3. Document your experience

Keep a journal detailing these throughout your internship: questions, advice, what you love, what you don't, what you learned.

4. Build a 'career board of directors'

Seek out people who believe in you and are willing to meet regularly to answer questions and provide advice.

5. Know it is ok to ask

Know that your mentors were once new to the workplace. It's ok to ask them big picture questions.

6. Create a feedback loop

Regularly ask your manager these questions: How can I chip in more? What am I doing right? What can I improve?

7. Show you're a team player

Ask people not just about their roles, but about the teams they're a part of. You'll discover what teams you gravitate towards.

8. Connect the dots

Shadow a quantitative researcher, software engineer, equities analyst, or trader.

9. Learn about idea generation

Ask portfolio managers about how they generate fresh ideas for strategies.

10. Show gratitude

Write thank you notes to those who mentored you throughout the internship. Keep in touch with them through LinkedIn.

SEE ALSO: The amazing story of how a Navy pilot-turned-Superbowl winner made it on Wall Street

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A Microsoft exec is making a surprise move to Wall Street, and it highlights how trading is changing

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Kevin Turner Citadel

Global securities firm Citadel has hired a new key executive — from Microsoft.

B. Kevin Turner, who was chief operating officer of Microsoft for 11 years, has joined Citadel as CEO of Citadel Securities, the hedge fund's market making business, and vice chairman of Citadel.

"Kevin is a proven innovator who brings expertise in technology and operations with a client-first focus," Citadel founder and CEO Kenneth Griffin said in a statement.

Before Microsoft, Turner spent nearly two decades at Walmart, where he worked his way up from a cashier to chief information officer and later president and CEO of the Walmart-owned retailer Sam's Club.

"There is this real passion that Ken and the company has to build the most successful hedge fund and securities firm in the world — I love to work for companies that want and aspire to be the best," Turner said in a video interview with Citadel.

Citadel Securities provides automated market making and execution services. It trades products including equities, equity options, and interest rate swaps for retail and institutional clients.

Last year, it ranked second on a list of the top 10 firms by volume traded on BrokerTec, an ICAP-owned trading platform for US Treasurys that is believed to make up 65% to 70% of interdealer market volumes. It is the largest designated market maker on the New York Stock Exchange, and recently acquired the equity-trading operations of Citigroup’s Automated Trading Desk division.

Turner's hire comes at a time when technology is a much bigger part of the financial system. Six of the top eight hedge fund firms are quants, or managers who rely on computer programs to guide their investing.

The vast majority of stock trading is now completed electronically. Tech-driven high-frequency trader firms now dominate the US Treasury market. Goldman Sachs and JPMorgan have described themselves as technology companies.

He is the latest executive to make the jump from a technology company to a financial firm. Bridgewater in March hired computer scientist Jon Rubinstein as co-CEO, replacing longtime Bridgewater executive Greg Jensen in that role. Rubenstein spent nearly 16 years working alongside Steve Jobs, first at NeXT and then at Apple.

"I'm a competitive person by nature, and I have been in competitive companies, and I love to compete — joining a company where, certainly, there is a real fire in the belly to compete and bring that energy is something I look forward to," Turner said.

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A Wall Street CEO who started out as a Walmart cashier shares his best careers advice

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Kevin Turner, Citadel Securities

Kevin Turner is on the move.

The former Microsoft chief operating officer is joining Citadel Securities as chief executive officer.

He will also be the vice chairman of parent company Citadel, which manages $24 billion as of June.

Prior to Microsoft he worked his way up at Walmart, starting as a cashier while in college and later becoming CIO responsible for many of the company's industry-setting technology initiatives. He later became CEO of Sam's Club.

In a video by Citadel Securities released Thursday, Turner revealed the one thing he has learned over his varied career. 

"I learned a long time ago, it's not the people you work for that determines your success, it's the people you work with," he said. "And being able to get the very best out of them I think is critical from my standpoint."

Here is Turner (emphasis ours):

"We all work very very hard in business. When you think about business in that aspect, there's lots that goes on in the day. There are lots of meetings, celebrating of results, challenging performance...there are lots of tactics that goes into a business model. When our work is done, the one thing that we're going to remember and hopefully be remembered for, was our relationship with other people. And having that bond with other people and inspiring them to do their very best work, is what I aspire to do at Citadel."

Here's the video:

 

SEE ALSO: A senior GE executive started asking this one question in meetings after realizing an important lesson about leadership

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The hedge fund at the heart of an insider-trading scandal is winding down a key fund

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Ken Griffin

A big hedge fund transaction is hanging in the balance.

Visium Asset Management, a hedge fund at the heart of an insider-trading scandal that has outlined plans to shut down, in June inked a deal to sell one of its funds to AllianceBernstein.

Visium told investors on Wednesday that it will now unwind that fund, according to a person familiar with the matter, putting that transaction in doubt.

The firm is also changing its auditor to PKF O'Connor Davies from KPMG, the person said.

Visium Asset Management said that it would shut down after regulators said last month that several Visium employees had allegedly committed fraud and insider trading.

AllianceBernstein, which manages $487 billion, had been planning to buy one of Visium's main hedge funds, a global equity-focused fund that is not the target of regulators' inquiries.

Questions had been swirling around the proposed deal for some time. One person familiar with the matter said that the global fund had been expected to drop significantly in assets as investors yanked their money from the fund. It managed more than $2 billion as of earlier this year.

Several of its key portfolio managers also had left even before the proposed deal was announced, including Rohit Shah, who is moving to Caxton Associates, and Arnaud Saint-Sauveur, who is set to move to Lombard Odier, people familiar with the matter previously told Business Insider.

Visium previously had a stringent non-compete policy for its employees who wished to work at competing firms, but had been loosening those terms ever since the firm came under fire, people familiar with the matter said.

That's a departure from last year, when Michael Kestenbaum, a portfolio manager on the global fund, looked to move to competitor Folger Hill and filed a suit against Visium to get out of his non-compete, according to public filings.

On Wednesday, Rob Copeland and Sarah Krouse at The Wall Street Journal reported that Ken Griffin's Citadel has hired 17 portfolio managers from Visium. They could start as early as August, according to the report.

Visium's global fund has been down this year, alongside the firm's flagship healthcare hedge fund. Through June 30, the global fund is down 4.85%, according to an investor update seen by Business Insider. The healthcare fund, Visium Balanced, which is the target of the insider-trading investigation, is down 10.75% over the same period.

Business Insider also reported this week that someone is trying to sell an investment in Visium's Balanced fund.

Representatives for Citadel did not respond to requests for comment. A representative for AllianceBernstein declined to comment on the state of the deal.

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Ken Griffin's $26 billion firm has made a hire from a struggling hedge fund

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Ken Griffin

A struggling hedge fund has lost a portfolio manager to Ken Griffin's $26 billion Citadel.

The portfolio manager, Jennifer Pollak, is moving from Folger Hill Asset Management to a Citadel stock-picking unit, Aptigon Capital. Citadel confirmed the hire. 

Folger Hill, founded by ex-SAC Capital chief operating officer Sol Kumin, was down about 15% last year through November in its main fund, and earlier in 2016 lost about a third of its assets, Reuters reported.

The firm managed about $1 billion as of mid-2016, according to the Hedge Fund Intelligence Billion Dollar Club, and assets fell to about $600 million just three months later, according to Reuters. The firm now manages more than $1 billion, according to a person familiar with the matter. 

Pollak is the first portfolio manager to voluntarily leave the firm, according to a separate person familiar with the matter.

Last year, Citadel's Aptigon unit poached about 17 portfolio managers from Visium Asset Management amid an insider-trading scandal, imperiling a potential sale to another asset manager.

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One of Ken Griffin's senior staffers has left hedge fund giant Citadel

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Ken Griffin

One of Ken Griffin's portfolio managers has left Citadel, the $26 billion hedge fund titan, according to people familiar with the matter.

Karl Kroeker, who specialized in tech, worked nearly 14 years at Citadel and left earlier in February, according to one of the people. He was a portfolio manager in Citadel's Global Equities unit in San Francisco and has not yet been replaced, the person said.

The move follows Citadel shutting its Ravelin stock-picking unit, which was also based in San Francisco, earlier this year, and merging the teams within the unit with Global Equities.

“Citadel has decided to consolidate Ravelin Capital into our Citadel Global Equities business," a spokesman for Citadel told Business Insider at the time. "This decision will further strengthen Global Equities by incorporating the best ideas and strongest talent from Ravelin.”

Three units remain at Citadel: Surveyor, Global Equities and Aptigon.

Citadel, which is headquartered in Chicago and was founded by billionaire Ken Griffin, is one of the US' biggest hedge fund firms. The company managed $24 billion as of mid-year 2016, according to the Hedge Fund Intelligence Billion Dollar Club ranking. The firm now manages about $26 billion, one of the people said.

Kroeker couldn't immediately be reached for comment.

SEE ALSO: Ken Griffin has shut down one of Citadel's stock-picking units

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One of Ken Griffin's senior staffers has left hedge fund giant Citadel

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Ken Griffin

One of Ken Griffin's portfolio managers has left Citadel, the $26 billion hedge fund titan, according to people familiar with the matter.

Karl Kroeker, who specialized in tech, worked nearly 14 years at Citadel and left earlier in February, according to one of the people. He was a portfolio manager in Citadel's Global Equities unit in San Francisco and has not yet been replaced, the person said.

The move follows Citadel shutting its Ravelin stock-picking unit, which was also based in San Francisco, earlier this year, and merging the teams within the unit with Global Equities.

“Citadel has decided to consolidate Ravelin Capital into our Citadel Global Equities business," a spokesman for Citadel told Business Insider at the time. "This decision will further strengthen Global Equities by incorporating the best ideas and strongest talent from Ravelin.”

Three units remain at Citadel: Surveyor, Global Equities and Aptigon.

Citadel, which is headquartered in Chicago and was founded by billionaire Ken Griffin, is one of the US' biggest hedge fund firms. The company managed $24 billion as of mid-year 2016, according to the Hedge Fund Intelligence Billion Dollar Club ranking. The firm now manages about $26 billion, one of the people said.

Kroeker couldn't immediately be reached for comment.

SEE ALSO: Ken Griffin has shut down one of Citadel's stock-picking units

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KEN GRIFFIN: 'Our entire country is built on the work ethic of immigrants'

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Ken Griffin

LOS ANGELES – Citadel's Ken Griffin says he is "terrified" about the political hardline against immigrants in the US.

Speaking at the Milken Institute Global Conference held at the Beverly Hilton, the hedge fund billionaire said that several senior execs at his $27 billion firm are immigrants.

"They came here for their education, they put down roots here, and this is where they had their families and careers," Griffin said at the Milken conference on May 1. "They're incredibly driven."

"I am terrified because our entire country is built on the work ethic of immigrants," Griffin added.

Citadel, one of the world's biggest hedge fund firms, is based in Chicago and has offices globally. 

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A hedge fund billionaire says Chicago's roads are 'borderline third world'

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Ken Griffin

LOS ANGELES – Hedge fund billionaire Ken Griffin said he finds US infrastructure a disgrace. 

Speaking at the Milken Institute Global Conference held at the Beverly Hilton, Griffin described how he finds driving in Chicago, where his fund, $27 billion Citadel, is based.

"It’s a borderline third world country," he said. "It’s a disgrace. It’s simply wrong."

The billionaire also said the US needs to address its airports and its electrical grid, by implementing lower cost of production.

Griffin also said he is concerned about a disparity in access to technology between the rich and the poor.

"If you grow up in the inner city of Chicago and don't have access to Google as a young boy or girl, that puts you at a big disadvantage," he said.

Griffin also said that he was bullish on the Trump administration's pitch to deregulate industries like energy and financial services, and its push for tax reform.

However, he also flagged concerns about the administration's rhetoric on immigration. He said he was "terrified" since many of his hedge fund's senior staffers were born outside the country.

Citadel, one of the world's biggest hedge fund firms with $27 billion, is based in Chicago and has offices globally. 

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The Trump administration hired an official who was accused of sexually assaulting five students

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Donald Trump

A political appointee hired by the Trump administration for a significant State Department role was accused of multiple sexual assaults as a student several years ago at The Citadel military college.

Steven Munoz was hired by the Trump administration as assistant chief of visits, running an office of up to 10 staffers charged with the sensitive work of organizing visits of foreign heads of state to the U.S. That includes arranging meetings with the president.

At The Citadel, five male freshmen alleged that Munoz used his positions as an upperclassman, class president and head of the campus Republican Society to grope them. In one incident, a student reported waking up with Munoz on top of him, kissing him and grabbing his genitals. In another, on a trip to the Conservative Political Action Conference in Washington, D.C., a student said that Munoz jumped on him in bed and he “felt jerking and bouncing on my back.”

An investigation by The Citadel later found that “certain assaults likely occurred.” A local prosecutor reviewed the case and declined to seek an indictment.

Munoz’s hiring raises questions about the Trump administration’s vetting of political appointees, which has been both slow and spotty, with multiple incidents of staff being fired only weeks into their jobs, including for disloyalty to Trump. The White House didn’t respond to a request for comment.

Munoz, a Miami native, worked as a political consultant in South Carolina after graduating from The Citadel in 2011. He was publicly reported to be under investigation the following year around the time he was working for Rick Santorum’s presidential campaign. Stories from that time, which outline some but not all of the allegations against Munoz, are easy to find via a simple Google search.

Details of the case, drawn from an extensive, previously unreported police case file, also raise questions about The Citadel’s response to the alleged string of assaults, according to experts in campus sexual assault. After one student reported to a school official in 2010 that Munoz had sexually assaulted him, The Citadel didn’t discipline Munoz. Instead, it gave him a warning.

Over the next year and a half, Munoz allegedly assaulted four other students. Those incidents weren’t reported until well after Munoz graduated in 2011.

Steven MunozMunoz referred questions to his lawyer, the prominent Charleston defense attorney Andy Savage, who denied the allegations. “I believe that certain disgruntled cadets made exaggerated claims of wrongdoing concerning Munoz’s participation in boorish behavior that was historically tacitly approved, if not encouraged, by the Institution,” Savage said. 

Upon graduation, The Citadel gave Munoz an award for “leadership, sound character and service to others.” The citation said he could “always be counted upon to help classmates who need assistance and to mentor younger cadets adjusting to life at The Citadel.”

A Citadel spokeswoman, Kim Keelor, said the committee that gave the award would not have known about the 2010 allegation because of privacy law. Keelor said of the case overall: “The college proceeded thoughtfully in addressing the reports in accordance with its policy and related processes, and with great concern for those involved and the protection of their privacy.”

When more students came forward the year after Munoz graduated, The Citadel banned him from campus and referred the case to state police, who did an extensive investigation.

When The Citadel later conducted its investigation, it interviewed complainants and witnesses and concluded in 2014 that assaults occurred “based upon a ‘preponderance of evidence,’” according to a statement from the school to ProPublica.

The Citadel is a storied public college based in Charleston, South Carolina, where students, known as cadets, get military instruction as well as traditional coursework. Many join the armed services after graduation.

Freshman are dubbed “knobs” for their shaved haircuts. They go through what the school refers to as “strict indoctrination.” They are subordinate to upperclassmen. There have been repeated hazing problems for many years, and there was a major scandal involving sexual abuse at the school’s summer camp in the mid-2000s.

Citadel cadetsThe students who accused Munoz of assaults say that he abused his power as an upperclassman and student leader.

Here is what one Citadel student told police about his encounters with Munoz in 2009 and 2010 during his freshman year:

“Munoz coerced threatened and convinced me to allow inappropriate touching, grabbing, and kissing by leading me to believe it was what I needed to do to gain acceptance in the corps of cadets. He threatened to call my upperclassmen who would be upset if I did not comply with him.”

The student told police he and Munoz would sometimes return to campus early and stay at the home of a Citadel professor, where “during the night Munoz would enter my room and continue the touching.”

Another student who was a freshman in 2011 traveled with Munoz, then a senior, as part of the Republican Society trip to the annual CPAC event in Washington. The student later said in a statement to police that Munoz had jumped on him two times. In one incident, after the freshman was caught with alcohol, Munoz informed the younger student that he would not be citing him for the violation, then came into the freshman’s hotel room:

“I was groggy, [Munoz] jumped on me, I felt jerking and bouncing on my back, I threw my elbow up which threw him off the bed to the floor.”

A third student, who met Munoz through the Republican Society, described Munoz setting up a series of meetings with him alone in Munoz’s room to talk about how to get leadership positions in campus organizations.

“He instructed me to sit on his bed during these meetings. … After a few meetings he began to rub my leg with his hand. He moved his hand under my shorts and the first time I pushed his hand off my leg he said he was just playing and that he did it with his other knobs so I shouldn’t mind. I had seen this in the past and when I asked my classmates about the interaction, they said when they resisted, he yelled at them for not trusting him and Mr. Munoz made them stay longer in his room.”

In another meeting, Munoz “put his other hand down my underwear until I again pushed him away, but he did not stop. He said as a new leader I had to learn to trust other leaders on the team and this was how I should show him I trusted him.” Munoz said “he read the Bible and knew what it said and I should not question his love of God. He continued to rub my leg and rub my private area. … He said this needed to stay between us and dismissed me.”

The first incident reported to the school took place in April 2009. As later recounted by a state police investigator, Munoz, then a sophomore, and a freshman were at an off-campus house watching TV and consensually spooning. The freshman later woke up in the middle of the night, “thinking he was having a wet dream, but it was Munoz on top of him with fully body contact, kissing him with his tongue in his mouth. Munoz had his left hand down [the other student’s] shorts touching his penis.”

The following year, in February 2010, the student reported that incident to a Citadel official, Sexual Assault Response Coordinator Janet Shealy. The reporting student told Shealy he didn’t “want to do anything but informal,” according to her notes.

Rick SantorumSchool officials set up a mediation session in which Munoz and the other student met in a conference room. In that meeting, according to Shealy’s notes, Munoz “said it was consensual and that accuser started it.” The other student left “upset,” saying that Munoz had “lied.”

Shealy and another Citadel official, Col. Christopher “Hawk” Moore, met with Munoz again to tell him there would be no disciplinary action taken. Munoz was warned and told to write a statement about what happened.

Experts on campus sexual assault questioned how The Citadel handled that initial report.

“The school has the responsibility to keep people safe on campus,” said Colby Bruno, an attorney at Victim Rights Law Center. “The school should have investigated this more thoroughly. Instead of investigation they went to this mediation.”

Bruno pointed out that the federal government’s guidance on how schools should respond to sexual assault under federal civil rights law explicitly says that even voluntary mediation is not appropriate in assault cases.

“Sexual assault is about power and control,” Bruno said. “You can’t sit two people down who have an imbalance of control and power to have a balanced mediation.”

Citadel spokeswoman Keelor said in a statement that the school’s policy on mediation differs from the federal guidance “because it was developed under the direction of the Department of Justice and the federal courts during the school’s transition to coeducation” in 1996.

Keelor said after the 2010 assault report “the college conducted an investigation.” She said the school could not give details about any specific case. But she said in a statement that generally an “informal investigation” would include interviewing both students and providing options for support services. The statement also details how the Citadel requires sexual assault prevention classes for each year of a student’s time at the school.

Shealy, The Citadel’s sexual assault response coordinator, declined to comment.

Citadel Charleston South CarolinaBruno said a thorough investigation would include speaking to potential witnesses or people who had seen Munoz or the other student soon after the alleged assault.

When more students came forward in fall 2012 — more than a year after Munoz graduated — The Citadel referred the case to the state police, the South Carolina Law Enforcement Division. The school also sent a campus-wide email notifying students of the allegations and banned Munoz, then an alumnus, from campus.

One student said in a statement to campus police that he had come forward so long after what happened because he had heard of other incidents and “I want this school to be safe from sexual predators.”

Over the course of several months, police interviewed the five alleged victims, who said they were willing to press charges. (None of them responded to our requests for comment.) The incidents were classified variously as forcible fondling, sexual battery and simple assault.

In March 2013, the state police referred the case to the office of the Charleston County prosecutor, Solicitor Scarlett Wilson. A week after receiving the nearly 200-page case file, the prosecutor said in a letter to police that her office would not seek indictments against Munoz because “there is no probable cause that he committed a crime prosecutable in General Sessions Court.”

Wilson’s office did not respond to requests for comment.

In 2014, according to The Citadel, Munoz requested that the school review its decision to ban him from campus. That’s when the school conducted its own investigation and found that “certain assaults likely occurred.”

Later that year, the school partially rescinded the no-trespass order, “permitting general access to public facilities and events, but no direct cadet interactions.” Asked why, the school pointed to the prosecutor’s decision not to seek indictments.

Savage, Munoz’s lawyer, said in his statement: “Steven Munoz, a graduate of the Corp with a sterling reputation for honesty, integrity and all Corp values, was used as a whipping boy in an attempt by the institution to change its shameful image shaped by its ignorance of the conduct of Skip ReVille and Michael Arpaio.” ReVille and Arpaio were at the center of widely covered Citadel sexual assault and child abuse scandals.

At the time two of the allegations against Munoz surfaced in 2012, Savage told The Post and Courier newspaper that the allegations were not only false, but also politically motivated. Savage claimed that an unnamed Citadel employee — who was also the mother of one of the alleged victims — had released information on the allegations because she disliked Munoz’s conservative politics. Savage declined our request to provide details to substantiate his claim.

Savage also criticized the investigation of the case, saying that “several cadets complained that they were being pressured to provide misleading statements.” They were “pressured to report interactions that the cadets considered typical barracks banter as if they felt it was inappropriate,” he said.

When asked for details, Savage provided the name of one student, who Savage said was a witness, not a victim. The student is not cited as a witness in the nearly 200-page police case file, and was not immediately available for comment.

Savage also criticized the school’s investigation, saying he was not given enough time to provide witnesses or statements.

Since Munoz graduated, he has been president of a Charleston-based political consulting firm called American Southern Group, according to his LinkedIn profile. The Trump campaign paid the firm tens of thousands of dollars for “event consulting,” according to disclosure filings.

Munoz was then hired to work on Trump’s inaugural committee.

He joined the State Department on Jan. 25, a spokesperson confirmed. The agency declined to comment further.

During the Obama administration, vetting of potential political appointees like Munoz was extensive. A possible hire would be thoroughly examined by the White House Office of Presidential Personnel before being offered a job. That would include everything from a Google search to running a person’s name through criminal records and news databases.

Any significant negative media reports or criminal accusations would lead a file to be flagged for further scrutiny by White House lawyers, according to a former staffer in the office who vetted Obama appointees. Sexual assault allegations would be a serious flag. In the Obama years, candidates under consideration for jobs were passed over because of, for example, a drunk driving case or for being a registered lobbyist.

President Trump’s personnel office is being run by a former Republican Capitol Hill staffer, Johnny DeStefano. But not much is known about how the office checks the backgrounds of political appointees. The White House didn’t respond to a request for comment about details of its vetting process.

Timeline

April 2009: Alleged assault of Student #1 occurs.

November 2009-May 2010: Alleged assaults of Student #2 occur.

February 2010: Student #1 reports assault to The Citadel.

February-March 2010: School officials meet with Munoz and Student #1 for mediation. Officials warn Munoz but take no disciplinary action.

April 2010: Alleged assault of Student #3 occurs.

February 2011: Alleged assault of Student #4 occurs.

March-April 2011: Alleged assault of Student #5 occurs.

May 2011: Munoz graduates.

September 2012: After receiving more reports of past alleged assaults, The Citadel refers case to state police. The school bans Munoz, now an alumnus, from campus.

March 2013: After an investigation of over five months, state police send case file to the office of the prosecutor, Solicitor Scarlett Wilson.

March 2013: Prosecutor declines to seek indictments.

2014: Munoz requests that school review no trespass order. The Citadel “conducted an investigation, interviewing complainants and witnesses. Based upon a ‘preponderance of evidence,’ it was concluded that certain assaults likely occurred,” according to a spokesperson.

Later in 2014, the no-trespass order was partially rescinded, allowing Munoz to attend public events at the college, but limiting interactions with students.

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A 12,000-Year-Old Turkish citadel is about to be washed away on purpose

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Hasankeyf is an ancient town and district located along the Tigris River in the Batman Province in southeastern Turkey.

The Hasankeyf citadel has, at different times, been a part of the Roman, Byzantine, Arab, Mongol, and Ottoman Empires.

A new major infrastructure project threatens one of the most impressive ancient sites in the world.

The Hasankeyf citadel in southeastern Turkey has been standing since the Middle Bronze Age and is some 12,000 years old. At different times, Hasankeyf been part of the Roman, Byzantine, Arab, Mongol, and Ottoman empires. Replete with caves, spires, and ancient buildings, Hasankeyf remains a beautiful connection to a distant past.

However, The Guardian reports that construction of the Ilisu Dam on the Tigris River is on the verge of raising water levels in the area and flood the citadel and 80% the city it was once part of.

This dam, part of the larger Southeast Anatolian project, has been in planning since the 1950s, but recently Turkish authorities have begun to demolish nearby cliff faces around the ancient city for "safety reasons."

Remains of the ancient town of Hasankeyf on the River Tigris, in Hasankeyf, Turkey.

Beyond the damage to this landmark, as well as countless other unexplored historic sites the dam is projected to flood, this dam will displace around 80,000 people, most of them Kurds, who still live around and in this long-standing city.

The dam will also severely change the delicate microclimates of the Tigris river basin, throwing the many endangered and threatened species that reside there in danger of extinction. This environmental damage will not stop at the Turkish border, and will have catastrophic effects on the biosphere of other nations that the Tigris runs through, cutting off their access to the free-flowing waters.

News of the ecological and historical damage that this dam will cause has already lead to numerous countries withdrawing funding for the project, including Germany, Austria, and Switzerland who pulled their funding in 2009.

The Ilisu Dam will undoubtedly cause devastating ecological, communal, political and historical damage to the area.

Nevertheless, the Turkish government is going through with the project in the pursuit of creating this large hydroelectric dam. Officials claim it will bring vital industry to a neglected section of the country, but many independent estimates believe that the dam may cause a net negative for the region, with the societal and economic costs of the mass displacement of the region's inhabitants.

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There has been a big shake-up at Citadel's Aptigon unit

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Ken Griffin

There has been a shake-up at one of the billionaire Ken Griffin's stock-picking units.

Rich Schimel, who headed Aptigon, a unit of the $27 billion hedge fund Citadel, and David Bonfili, formerly Aptigon's chief operating officer, have left, a spokesman for Citadel told Business Insider in an email.

"Eric Felder has been named Head of Aptigon Capital and Reza Shahi will assume COO responsibilities for the business," the spokesman said, adding that the changes were made "to strengthen the platform and drive investment performance." The spokesman added that Citadel had "parted ways" with several other Aptigon investment staffers, but he did not say who.

Felder joined Citadel last May to launch the Fundamental Strategies unit, and he later took on the firm's Global Credit business, per the spokesman. Felder will continue with these roles in addition to heading Aptigon.

The departures mark a sharp turnaround for Aptigon, which launched in 2016 with Schimel at the helm. At the time, Schimel went on a hiring spree from the fallen rival Visium Asset Management, bringing on 17 portfolio managers for the unit, The Wall Street Journal reported at the time. Schimel previously cofounded Diamondback Capital.

The spokesman said: "We are committed to the success of Aptigon Capital, and we will continue to recruit leading talent to the team."

SEE ALSO: Citadel's Eric Felder builds out Fundamental Strategies unit

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Citadel portfolio manager Gupta has left a new investment group after less than a year on the job

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Ken Griffin

  • Neel Gupta, a portfolio manager at Citadel's Fundamental Strategies unit, has left.
  • Gupta had joined Citadel less than a year ago from Pine River Capital.

A portfolio manager who was part of Citadel's burgeoning Fundamental Strategies group has left less than a year on the job.

Neel Gupta recently left Citadel, people familiar with the matter said. 

In September 2017, Gupta joined Citadel's Fundamental Strategies group as an equities portfolio manager from Pine River Capital, where he focused on event-driven equities, Business Insider earlier reported.

The group is headed by Eric Felder, who was hired from Magnetar last year. The team, which invests across various asset classes, has grown to 20 investment professionals since launching last year.

The reasons for Gupta's departure are unclear. Gupta declined to comment.

Citadel's flagship Wellington fund gained 2.5% in April and about 7% year to date through April after fees, a person familiar with the numbers said. The flagship fund encompasses performance from multiple units at Citadel.

SEE ALSO: Jason Karp's Tourbillon had a bad April

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Ken Griffin's Citadel just hired a big-name Morgan Stanley trader

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Nicola White

Ken Griffin's Citadel has hired a top trader from Morgan Stanley.

Morgan Stanley's global head of rates electronic trading, Nicola White, is joining Citadel Securities as global COO for fixed income, currencies and commodities, the firm has confirmed.

"She has a broad and varied skill set that's going to help us grow the business further," Paul Hamill, Citadel Securities' global head of fixed income, currencies and commodities, told Business Insider.

"She's extremely talented and we're very thrilled to have her join us."

Bloomberg first reported that White was leaving Morgan Stanley for Citadel.

White joined Morgan Stanley as a software developer for the mortgage-backed bond business in 2003 after interning with the firm in 2002, according to a profile on Morgan Stanley's website.

She has developed real-time mortgage pricing software, traded government bonds, and worked with clients and market structure in a COO role, according to the profile.

Citadel in 2014 hired Hamill from UBS to develop its fixed-income and credit trading division.

The firm wants to compete in businesses where investment banks are pulling back. It began trading credit-default swaps earlier in 2016.

"Certain changes in market structure over the last several years have created a landscape where firms like us can enter a market and compete with traditional investment banks, and interest rate swaps trading is a good example of this," Hamill said.

"The banks are pulling back and some are even getting out of a lot of these businesses as many lack the technology or the risk appetite needed to compete, and that pullback coupled with some of the regulatory changes impacting market structure have created a great opportunity for us to serve investors."

SEE ALSO: Billionaire hedge fund manager Ken Griffin dropped $500 million on 2 contemporary paintings

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A handful of hedge fund managers earned a combined $7.4 billion last year

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Ken Griffin

Institutional Investor's annual list of the top-earning hedge fund managers is out, and the sums involved are astronomical.

Ken Griffin of Citadel ranks highest, having earned $1.7 billion in 2015. Jim Simons of Renaissance Technologies also earned $1.7 billion, while Ray Dalio of Bridgewater earned $1.4 billion.

The top five hedge fund managers earned a combined $7.35 billion. $7.35 billion!

The top 25 took home close to $13 billion. That works out at an average of more than $500 million each.

The list seems incongruous with a challenging year for many hedge funds.

As Alexandra Stevenson over at The New York Times points out, some of those included on the list actually lost money for some of their investors last year.

At Bridgewater, for example, the All Weather fund was down 7%. Bridgewater's other funds did deliver returns for investors, though.

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The Citadel is denying a Muslim student's request to wear a head covering

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France muslim women hijab

A Muslim student will not be allowed to wear a hijab with her uniform at the Citadel military college in South Carolina should she decide to enroll this fall, the school's president said on Tuesday.

Lieutenant General John Rosa, the president, said the public military college recognized the importance of individual religious beliefs but could not grant the exception to the standardized uniform considered essential to its learning goals.

"Uniformity is the cornerstone of this four-year leader development model," Rosa said in a statement. "This process reflects an initial relinquishing of self during which cadets learn the value of teamwork to function as a single unit."

Rosa said the student's request to wear the headscarf was given "considerable review" by the college in Charleston, and he added the school hoped the admitted student would still enroll.

The student was informed of the decision Tuesday morning and has not said whether she will attend, Citadel spokesman Brett Ashworth said in a phone interview.

Some students and alumni had spoken out against allowing the exception to be made, citing the military college's emphasis on uniformity in apparel and privileges.

Citadel students are required to wear uniforms furnished by the college at nearly all times except when the corps of cadets is furloughed or a cadet is on leave, according to the college's website.

Ashworth said the Citadel allowed an exception to the uniform requirement several years ago when a cadet requested for religious reasons to wear long pants and a long-sleeved shirt for physical fitness training.

Requests for religious accommodations are handled on a case-by-case basis and are commonly made for prayer and dietary needs, school officials said.

"We do everything we can to support our cadets," Ashworth said. "We allow cadets prayers time. We've released cadets on a Friday night or a Saturday night or to miss an inspection for a religious service."

 

(Reporting by Harriet McLeod; Writing by Colleen Jenkins; Editing by Marguerita Choy)

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10 tips for new Wall Street interns from hedge fund giant Citadel

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ken griffinSummer is here, and that means a flock of eager students are about to start an internship on Wall Street.

Most have been though the usual drill: networking with alumni, impressing recruiters at info sessions and career fairs, and trying to nail tricky interview questions.

Wherever you're coming from, it's time to get organized and know how to stand out from the rest of the extremely competitive pack. 

Hedge fund giant Citadel, which frequently posts "stumpers" on its careers Twitter and apparently has a strong #UglySweater game, recently published a checklist for new interns:

1. List your goals

Write down what you want to get out of the internship before your first meeting with your manager.

2. Identify milestones

Develop goals with your manager for projects to tackle and skills to master.

3. Document your experience

Keep a journal detailing these throughout your internship: questions, advice, what you love, what you don't, what you learned.

4. Build a 'career board of directors'

Seek out people who believe in you and are willing to meet regularly to answer questions and provide advice.

5. Know it is ok to ask

Know that your mentors were once new to the workplace. It's ok to ask them big picture questions.

6. Create a feedback loop

Regularly ask your manager these questions: How can I chip in more? What am I doing right? What can I improve?

7. Show you're a team player

Ask people not just about their roles, but about the teams they're a part of. You'll discover what teams you gravitate towards.

8. Connect the dots

Shadow a quantitative researcher, software engineer, equities analyst, or trader.

9. Learn about idea generation

Ask portfolio managers about how they generate fresh ideas for strategies.

10. Show gratitude

Write thank you notes to those who mentored you throughout the internship. Keep in touch with them through LinkedIn.

SEE ALSO: The amazing story of how a Navy pilot-turned-Superbowl winner made it on Wall Street

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