The hedge fund Citadel poaches the second Elliott portfolio manager in London

The hedge fund Citadel poaches the second Elliott portfolio manager in London

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Citadel has poached a second London-based portfolio manager from rival Elliott Investment Management, suggesting Ken Griffin’s hedge fund is looking to adopt activist tactics.

Pawel Serej, who left Elliott in the summer, is joining the $65 billion hedge fund Citadel in London as an event-driven portfolio manager, according to people familiar with the situation. He will focus on risk arbitrage, a strategy that speculates on the successful completion of mergers and acquisitions. Citadel declined to comment.

News of Serej’s appointment comes a month after the Financial Times reported that Nabeel Bhanji, an equity partner and senior portfolio manager at Elliott, was joining Citadel in a global leadership and investment role.

Bhanji and Serej worked closely together on several of Elliott’s most prominent non-American activist campaigns at companies such as SoftBank, Swedish Match and Toshiba. However, Serej’s departure from Elliott came several months before his senior colleague Bhanji, and the employment at Citadel had nothing to do with it, people familiar with the matter said.

Serej will start at Citadel in the middle of next year after a 12-month gardening break, they added.

Activists like Elliott typically buy shares in companies and advocate for changes that they believe will help boost share prices. More recently, Elliott has launched campaigns against major U.S. companies such as Honeywell, Starbucks and Southwest Airlines.

Citadel isn’t known for being an activist shareholder in the traditional sense, but the arrival of the Elliott duo suggests the company is trying to adopt activist tactics.

These typically span a spectrum ranging from threatening proxy fights and loud calls for management change to so-called constructive activists or “constructivists” who identify potential areas for improvement in their portfolio companies and work with management to realize that potential to realize.

Before joining Elliott in 2016, Serej worked as an analyst at JPMorgan and at private equity group MidEuropa, according to his LinkedIn profile.

Citadel’s teams trade a range of different strategies across commodities, credit and convertible bonds, equities, fixed income and macro, and quantitative trading.

Since its founding in 1990, it has become the most profitable hedge fund in the history of the $4.5 trillion industry. Its flagship Wellington fund rose 13.2 percent between January and November, according to investors.

Elliott has $70 billion in assets under management and is based in Florida. The London office serves as the company’s main international outpost and is headed by Gordon Singer, the son of the company’s 80-year-old founder Paul Singer.

Bhanji and Serej are two of more than half a dozen senior employees who have left the London office in recent years.

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