Who Owns Citadel Hedge Fund (Jan) Click To Know About It >> The article highlights the owner details and recent limitation on trading and purchase of stocks by Robinhood App for investors.
The trade investing application, Robinhood App and Citadel LLC has been in the news for its shutting down trading in some stocks that experienced a surge in its volatility. The hashtag of Who Owns Citadel Hedge Fund has been doing rounds on social media across the United States from then on. The sudden decision has left many people confused and angry about the move that has restricted users from purchasing shares from companies with short squeezes.
So, what is the issue about, and how does it affect the buyers? We have covered all the significant questions below.
What is the Citadel Hedge Fund?
As soon as Robinhood App’s news suspended investors from trading in stocks that had experienced volatility, there has been a constant search by users to know Who Owns Citadel Hedge Fund. But before we answer the question, let us gain clarity of why exactly the company is in the news.
In the early hours of Thursday, Robinhood App, one of the investment apps, restricted/ limited trading on stocks with heightened volatility. These companies include AMC Entertainment Holdings and GameStop Corp., which have heavy short interests.
Why is the Company in News?
As per customers from across the United States, this short squeeze in interest rates caused Robinhood to prevent users from initiating any long stock positions with the companies. However, customers believe this was done in Citadel LLC’s direction, who had experienced most orders from Robinhood in the third quarter.
Who Owns Citadel Hedge Fund hashtags has been doing rounds since the breaking of the news, with investors accusing Ken Griffin, the owner, conspiring with online brokers and freezing the purchase of shares.
However, the company has denied any involvement in the decision to stop the trading. Furthermore, they clarified that Citadel Securities had not instructed or caused any brokerage from getting stopped, suspended, or limit trading. The company continued to focus on providing liquidity to the clients under all market conditions.
Who Owns Citadel Funds?
The market maker Citadel Securities and Citadel LLC has a firewall between them. Herein the former does not have any idea of the latter’s position. Ken Griffin, Who Owns Citadel Hedge Funds, clarified that it had no involvement in the Robinhood App’s decision is limited trades. On the other hand, the trading app on Friday had highlighted its plan of allowing limited buying from Friday.
With the suspension of stocks, users are limited from trading and purchasing stocks from GameStop and AMC Entertainment. While the shares of the former had risen to 1,642% and later to 769%, the short squeeze caused Points72 Asset Management.
And Ken Griffin of Citadel LLC, Who Owns Citadel Hedge Funds, to rescue the hedge fund of Melvin Capital, investing $2.75 billion after the companies suffered a loss of 30% in the first three weeks.
Did Citadel Hedge direct Robinhood’s move? What do you think? We would like to know your opinion. Please share your views below in the comments section.