Key Takeaways
- • Citadel is imposing non-compete periods of up to two years on some investment professionals, including analysts, according to a Bloomberg report.
- • Analysts face a minimum 12-month garden leave, while higher-paid portfolio managers and analysts can be restricted for as long as two years, with the length tied to total compensation.
- • The terms are materially tighter than the nine-to-12-month analyst non-competes typically seen at other major multi-strategy hedge funds.
- • Citadel, which manages about $71bn, has drawn criticism from at least one rival hedge fund founder, who called the analyst restrictions excessive.
- • Ken Griffin has been a prominent advocate of tougher non-compete rules, having backed Florida legislation permitting garden-leave provisions of up to four years.
Summary
Ken Griffin's Citadel is imposing non-compete periods of up to two years on some investment professionals, including analysts, as the Miami-based multi-strategy hedge fund takes an increasingly aggressive approach to retaining talent and protecting its investment strategies, according to a report by Bloomberg. The report, citing unnamed people familiar with the arrangements, says the firm links the length of garden leave to an employee's total compensation.
Analysts face a minimum of 12 months away from the industry, while higher-paid portfolio managers and analysts can be subject to restrictions of as much as two years. Bloomberg reports that these terms are significantly more restrictive than those typically seen at other major multi-strategy hedge funds, where analyst non-competes generally run for nine to 12 months.
The approach is already drawing criticism from competitors. One hedge fund founder described the lengthy restrictions on analysts as excessive, arguing that the provisions could give Citadel disproportionate leverage over younger investment professionals.
Citadel, which manages about $71bn, has long used stringent employment agreements. Its portfolio managers faced non-competes averaging around a year in 2020, with some employees required to remain on garden leave for 18 months to secure deferred compensation. Some of those arrangements were subsequently extended to 21 months.
Griffin has been a prominent advocate of tougher non-compete rules. He backed Florida legislation that allows garden-leave provisions of up to four years, with the law taking effect in July 2025.
Analysts face a minimum of 12 months away from the industry, while higher-paid portfolio managers and analysts can be subject to restrictions of as much as two years. Bloomberg reports that these terms are significantly more restrictive than those typically seen at other major multi-strategy hedge funds, where analyst non-competes generally run for nine to 12 months.
The approach is already drawing criticism from competitors. One hedge fund founder described the lengthy restrictions on analysts as excessive, arguing that the provisions could give Citadel disproportionate leverage over younger investment professionals.
Citadel, which manages about $71bn, has long used stringent employment agreements. Its portfolio managers faced non-competes averaging around a year in 2020, with some employees required to remain on garden leave for 18 months to secure deferred compensation. Some of those arrangements were subsequently extended to 21 months.
Griffin has been a prominent advocate of tougher non-compete rules. He backed Florida legislation that allows garden-leave provisions of up to four years, with the law taking effect in July 2025.
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