"The key to our business, it's a lot of research."Kenneth C. Griffin On March 15, 2022, Bloomberg publishes Katherine Doherty's sweeping - and, in many ways, unprecedented - article "Citadel Securities Opens Up After Record $7 Billion Windfall" based on several (some for the first time) interviews with top Citadel Securities executives, including Peng Zhao (CEO), Matt Culek (COO), Joe Mecane (Head of Execution Services), and Jamil Nazarali (Head of Business Development). Alphacution provided data, a quote, and contextual background for the article... This article is also printed in the March 21 edition of Bloomberg Businessweek...
Tom Maloney, editor at Bloomberg, published "Jane Street, DRW Traders Made Billions as Virus Hit Market" on June 18, 2021 with a little seasoning from Alphacution.
"There is nothing to writing. All you do is sit down at a typewriter and bleed."Ernest Hemingway Tuesday, April 6, 2021 was a good day for Alphacution in the press... The morning started with a feature by Bloomberg Editor Tom Maloney, "Citadel Gets the Spotlight," wherein he tells the story of Ken Griffin and Citadel Securities' rise as major trading force in the post GFC landscape and - most notably since GameStop - as a recent focal point of politicians and regulators. (I'm sure Ken is not thrilled with the title image.) Here at Alphacution, this article will be remembered primarily for two things: First, for providing a few useful financial tidbits - and, second, for placing a few of our words in the largest font in our history to date - Should it have been "Amazonization" or "Amazonification"? Either way, you get the gist... One more thing on this: I may have told this tale before, but after throwing an unsolicited sharp elbow in Tom's direction in our December [...]
“Robinhood’s users have been mocked endlessly for their inexperience and even blamed for a stock market many view as out of touch with reality.” – by Bloomberg Opinion Columnist, Nir Kaissar Alphacution contributes to Bloomberg Opinion’s development of story on Robinhood, “Robinhood Is Democratizing Markets, Not Disrupting Them” (July 17, 2020).
"You can have all the transfer orders that you want, but you have to ask me nicely." - Col. Nathan R. Jessup, "A Few Good Men" On December 11, 2019, Bloomberg News editor Tom Maloney publishes an unusually illuminating article on Citadel Securities, "Ken Griffin Has Another Money Machine to Rival Hedge Fund," citing specifically that the market maker earned $3.5 billion of revenue in 2018 and "handles more than 1 of 5 shares traded in the US each year." Of note, the article includes two charts, the first of which ranking net trading revenue in 2018 for a selection of bank and non-bank market makers; and the second of which showcasing the shifting market shares of US retail equity wholesalers. Given that Alphacution has followed this and other firms in this space as closely or moreso than any others - for example, we are not aware of any other research and advisory group publishing a comprehensive case study on Citadel Securities - I wanted to add a few thoughts [...]
Clues... At it's core, this is much of what we are ever doing as a research and advisory operation: Looking for clues. Ideally, we are looking for the kinds of clues that recur as patterns. And then, tell the stories from those clues and patterns. (Better yet, if we can devise a mechanism to systematically discover more clues and more patterns with regularity, then we will have developed something quite valuable. But, I digress...) So, it was with great fascination that we discovered one of the next important clues; some evidence of the nature of transformation in the trading and investment world - and that which is indicative of so many other sympathetic movements in the broader financial industry. This is the falling of dominoes that we often refer to. Here's the gist: Quantitative methods are set to pervade much more of the traditional asset management community and a broader cross-section of the strategy spectrum. Likely more than expected. Reason being: Fee compression renders traditional investment processes too expensive and [...]