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2026-02-14 03:20:50
[High Employee Compensation "Eats" Profits: Heavy Costs Behind Citadel's $5.3 Billion Gain] Bond filings show that operating costs for Citadel's three flagship multi-strategy funds, which manage the majority of the company's $66 billion in assets, rose 4% last year, reaching nearly $4.5 billion. Preliminary annual data did not provide detailed breakdowns of the compensation percentage, but based on the expense ratio for the first nine months of last year, compensation costs were approximately $3.8 billion, roughly the same as the previous year. Net investment income for these three funds decreased by 14% year-on-year to $11.1 billion. The decline in income coupled with rising costs resulted in a combined 22% decrease in net profit for these funds, down to $5.3 billion.
