Citadel Investment Group, the hedge fund manager, has continued to profit from the turmoil in the debt markets by buying the credit portfolio of a fund founded by a team that helped run Harvard University’s $22 billion (16 billion) endowment, Financial News reports.
Citadel has agreed to buy the credit portfolio of Sowood Capital. A Citadel spokesman declined to comment on the size of the portfolio.
“This transaction provides for an orderly transference of risk between the parties, and I am proud of our team’s ability to execute this transaction in a timely fashion,” says Kenneth Griffin, president and chief executive of Citadel.
Last year, Citadel, together with JPMorgan, took over trading positions of Amaranth Advisors, the $8 billion hedge fund that collapsed after making large bets in the natural gas markets.