How Citadel's Ken Griffin Views Opportunities in China's Economy and Market (AI Translation)
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文｜财新周刊 王力为 岳跃
By Caixin Weekly's Wang Liwei, Yue Yue
肯·格里芬（Ken Griffin）是迄今全球最成功的对冲基金掌门人，并创办了全球最知名的做市商——城堡证券，也是积极投身美国社会及政治的商业领袖中广受关注的一位。
Ken Griffin, the founder of Citadel Securities, one of the world's most renowned market makers, is among the most successful hedge fund managers globally. He is also widely recognized as a business leader actively engaged in American society and politics.
现年55岁的格里芬21岁创立城堡投资，目前管理规模为610亿美元，2023年6月底位列全球对冲基金第三位，收益率排名居前，在全球股市大跌的2022年录得38%的回报，超越桥水基金成为全球成立以来累计回报最高的对冲基金，1990年以来年化回报率达19.7%。根据LCH Investments于2024年1月发布的最新统计，2023年城堡投资回报81亿美元，当年回报位列全球第二，历史累计回报继续高居榜首。不过，当年约16%的回报率低于生成式AI浪潮下标普500指数24%的涨幅。
At 55 years old, Ken Griffin founded Citadel Investment at the age of 21. Currently managing $61 billion in assets, Citadel ranked third globally among hedge funds as of the end of June 2023, with a leading performance record. In the tumultuous stock market of 2022, Citadel achieved a return of 38%, surpassing Bridgewater Associates to become the hedge fund with the highest cumulative return since its inception, boasting an annualized return rate of 19.7% since 1990. According to the latest statistics released by LCH Investments in January 2024, Citadel earned a return of $8.1 billion in 2023, ranking it second globally for the year's returns and maintaining its position at the top for historical cumulative returns. However, its annual return rate of about 16% fell below the S&P 500 index’s surge of 24% amid the generative AI wave.
2002年创立的城堡证券目前已发展为美国最重要的做市商，每天处理约4000亿美元的交易，处理美国股票交易量的约23%，处理美股散户交易量的35%；在美国的期权市场份额超过30%，排名行业第一；近年还打入固收领域，2023年10月在彭博美国国债交易排名第一、首次击败美国最大的银行。做市业务也成为城堡证券最主要的收入来源。
Founded in 2002, Castle Securities has grown to become one of the most significant market makers in the United States, handling about $400 billion in transactions daily. It processes approximately 23% of all U.S. stock trades and 35% of retail U.S. stock transactions. In the American options market, Castle Securities holds over a 30% share, ranking first in the industry. In recent years, it has also made strides into the fixed income sector. As of October 2023, it ranked first in Bloomberg's U.S. Treasury trading, surpassing the largest bank in America for the first time. Market making has also become the primary source of revenue for Castle Securities.
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- Ken Griffin, founder of Citadel Investment and Citadel Securities, is one of the most successful hedge fund managers globally. As of 2023, Citadel manages $61 billion with a 38% return in 2022, making it the highest cumulative return hedge fund historically. Citadel Securities has become a leading market maker in the U.S., handling about $400 billion in trades daily.
- Griffin has donated $1.56 billion across various sectors including education and politics, and is a major donor to the Republican Party. He recently contributed $5 million to Nikki Haley's presidential campaign.
- Griffin's views on China are positive; he participated in the China Development Forum (CDF) in Beijing and plans to expand Citadel's footprint in China by bidding for Credit Suisse Securities (China). His approach emphasizes leveraging technology and talent for business growth, evidenced by hiring experts like Zhao Peng as CEO of Citadel Securities.
Ken Griffin, the founder of Citadel Securities and Citadel Investment, is a prominent figure in the global financial industry. At 55 years old, he manages $61 billion in assets through Citadel, which ranks third globally among hedge funds as of June 2023. In 2022, Citadel achieved a remarkable 38% return rate, surpassing Bridgewater Associates with an annualized return rate of 19.7% since its inception in 1990. Despite a lower annual return rate of about 16% in 2023 compared to the S&P 500's surge of 24%, Citadel earned $8.1 billion that year, maintaining its top position for historical cumulative returns [para. 1].
Castle Securities, another Griffin-founded company established in 2002, has become a leading market maker in the U.S., handling around $400 billion in transactions daily. It processes about 23% of all U.S. stock trades and holds over a 30% share in the American options market. Recently, it ranked first in Bloomberg’s U.S. Treasury trading [para. 2].
Griffin's influence extends beyond finance into philanthropy and politics; he has donated $1.56 billion across various sectors and is one of the largest political donors to the Republican Party. His recent political contributions include $5 million to Nikki Haley's presidential campaign [para. 3]. Griffin also holds a positive view on China and expressed interest in entering the Chinese securities market by attempting to acquire Credit Suisse Securities (China) for up to 2 billion yuan [para. 4].
Technological innovation plays a crucial role at Castle Investments and Castle Securities. In response to global commodity fluctuations caused by events like the Russia-Ukraine conflict, Castle Investments utilized advanced weather prediction technologies to manage commodity supply and demand effectively [para. 5]. Additionally, leadership at Castle Securities includes Zhao Peng as CEO and Mu Bin as Chief Technology Officer—both are noted for their exceptional backgrounds and contributions to the firm’s success [para. 6].
Griffin's strategic approach includes significant investments in commodities through Castle Investments’ flagship fund, which allocates up to a quarter of its total positions to this sector [para. 7]. He also emphasizes integrating advanced technology into trading operations to improve liquidity and reduce transaction costs significantly [para. 8].
In terms of global competitiveness, Griffin pointed out China’s strengths during various international forums. He highlighted China's advancements in sectors like electric vehicles and solar energy while advocating for economic integration as beneficial despite challenges such as unemployment due to globalization [para. 9][para. 10]. Furthermore, Griffin criticized protectionist policies from U.S. leaders that could hinder competitive progress on both national and global scales [para. 11].
Overall, Ken Griffin continues shaping financial markets through his leadership at Citadel Securities and Castle Investments while influencing broader economic discussions globally.
- Citadel Securities
城堡证券 - Summary： Citadel Securities, founded by Ken Griffin in 2002, is a leading market maker in the U.S., handling about $400 billion in trades daily. It processes approximately 23% of U.S. stock trading volume and 35% of retail stock trades. The firm dominates over 30% of the U.S. options market and recently became the top trader in Bloomberg's U.S. Treasury rankings, surpassing major banks. Its market-making operations are its primary revenue source.
- Citadel Investment
城堡投资 - Summary： Citadel Investment, founded by Ken Griffin at age 21, now manages $61 billion. As of June 2023, it ranked third globally among hedge funds. In 2022, it achieved a 38% return, surpassing Bridgewater Associates with the highest cumulative return since inception. In 2023, Citadel Investment earned $8.1 billion, making it the second highest annual return globally.
- BYD
比亚迪 - Summary： In the fourth quarter of 2023, BYD's electric vehicle sales reached a record 525,409 units, surpassing Tesla's deliveries of 484,507 units in the same period. UBS Global Research analyzed BYD's new electric model, the BYD Seal, highlighting its cost advantages in battery and powertrain integration due to vertical integration and large-scale production.
- Tesla
特斯拉 - Summary： In the fourth quarter of 2023, Tesla delivered 484,507 electric vehicles. This figure was surpassed by BYD, a Chinese electric vehicle manufacturer, which sold a record 525,409 units in the same period. Ken Griffin expressed some disappointment at seeing BYD's global sales exceed those of Tesla.
- Contemporary Amperex Technology Co. Limited (CATL)
宁德时代 - Summary： Contemporary Amperex Technology Co. Limited (CATL) is a leading battery manufacturer, primarily known for its innovations in electric vehicle batteries. As mentioned in the article, CATL is praised for its cost efficiency and product upgrades, which contribute to a virtuous cycle of R&D investment across various sectors. The company's advancements are recognized as part of China's competitive edge in technology and manufacturing sectors globally.
- 1990：
- Ken Griffin founded Citadel Investment at the age of 21.
- 2002：
- Citadel Securities, a market maker, was founded.
- 2006：
- Zhao Peng, a math prodigy from Peking University, completed a summer internship at Lehman Brothers and then joined Citadel.
- 2016：
- Zhao Peng was promoted to CEO of Citadel Securities.
- 2017：
- Mu Bin, a graduate of the University of Science and Technology of China, was named Chief Technology Officer of Citadel Securities.
- 2018：
- Citadel Investments hired a team of scientists and analysts to predict weather conditions.
- 2022：
- Citadel achieved a return of 38% in the stock market, surpassing Bridgewater Associates to become the hedge fund with the highest cumulative return since its inception.
- May 2022：
- The pilot project for market making in STAR Market stocks was launched in China, marking the first time a market maker system was introduced to A-share listed securities.
- September 2022：
- UBS Global Research dissected BYD's new generation electric model—the BYD Seal—to study BYD’s supply chain, cost structure, and technology.
- December 2023：
- Ken Griffin contributed $5 million to Nikki Haley, a Republican presidential candidate.
- January 2024：
- Citadel Securities offered to acquire Credit Suisse Securities (China) for between 1.5 to 2 billion yuan.
- January 2024：
- LCH Investments released statistics showing Citadel earned a return of $8.1 billion in 2023, ranking it second globally for the year's returns.
- January 2024：
- Sam Altman, founder of OpenAI, stated at the 2024 Davos Forum annual meeting that breakthroughs in energy are crucial for achieving technological goals.
- January 26, 2024：
- The Biden administration in the United States suspended the export approval of new liquefied natural gas (LNG) projects.
- Late February 2024：
- Ant Group proposed a higher bid for Credit Suisse Securities (China), surpassing the offer from Citadel Securities.
- March 10, 2024：
- Morgan Stanley upgraded its rating on battery giant Contemporary Amperex Technology Co. Limited (CATL) in a report.
- Late March 2024：
- Ken Griffin attended the 2024 annual meeting of the China Development Forum (CDF) held in Beijing.
- March 21 to 24, 2024：
- Wang Wentao, China's Minister of Commerce, held intensive meetings with CEOs of 16 foreign companies attending a conference in China.
- April 8, 2024：
- JPMorgan Chase CEO Jamie Dimon stated in his latest annual letter to shareholders that the impact of AI technology on humanity is comparable to that of the printing press, steam engine, electricity, computers, and the internet.
- November 2024：
- The U.S. presidential election will see incumbent President Joe Biden face off against Donald Trump once again.
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