131 South DearbornChicago, IL 60603
December 22, 2010Dear Investor:From the beginning, Citadel sought to be different. I wanted to create an institution unlike anyother
a firm that harnessed technology and quantitative methods to uncover unique opportunitiesin the market. At the time, it was an innovative
approach to finance.Whatever confidence I had to pursue this idea, at the age of 22, was inspired by the example of one
my grandmother, Genevieve Gratz. In many respects, mygrandparents lived the American Dream. While still in their early 20s, my grandfather, Wayne
My grandfather died suddenly in 1963. Within days, five well-dressed men from the local bank
afuel oil distribution concern. Surely, they assumed, a widow with two daughters to raise and a farmto run would be eager to sell. They were wrong. Instead, my grandmother dedicated herself tolearning how to successfully operate and expand the business. Years later, she sold it for severaltimes what was offered that day.
age 98, I amconfident our performance has justified her belief in Citadel. It also demonstrates the timelessnessof the values and principles that she passed on to me. These ideals can be distilled into four simplelessons.
From the beginning, I understood that my vision for Citadel could not be fulfilled unless I hiredincredibly talented, motivated and committed professionals. I wanted to build a culture of opportunity
a meritocracy, where advancement was decided based on the merits of an idea and onthe strength of its execution. Let me provide just one brief illustration of the type of individual our corporate culture attracts.
senior member of the operations teamspent several weeks working around-the-clock on platform integration. A month into this heroiceffort, I made a point of suggesting she finally take a day off, noting that her tireless efforts wereimmensely appreciated. No, she replied with a smile, she had no interest in time off and there wasno need for thanks. These were some of the best days of her career, she said, and what she was a part of would be a
Keeping committed leaders like this engaged requires us continually to create challenging andfulfilling career opportunities. Across all strategies, Citadel has built the culture of opportunity thatI envisioned so long ago. For example, within our Global Equities team, 14 of our 20 portfoliomanagers started at Citadel as an analyst or an associate. More than half of our current analysts began their careers at Citadel as associates.