Commentaries

Now raising intellectual capital

Citadel joins the Sergey fray

Ken Griffin’s Citadel Investment Group just filed a lawsuit against former top trader Misha Malyshev for apparently violating a non-compete agreement he signed when leaving the big Chicago hedge fund earlier this year. Malyshev, of course, is the founder of Teza Technologies, an upstart high-frequency trading hedge fund that hired away alleged Goldman Sachs code-cracker Sergey Aleynikov.

Malyshev and his partners, all former Citadel people, put out a statement on Tuesday saying they suspended Aleynikov after learning of his July 3 arrest. The former Citadel guys also say they were unware of Aleynikov’s alleged theft of Goldman’s proprietary trading computer code.

I don’t have a copy of the complaint yet, so I don’t know whether Citadel has sued anyone else at Teza. Nor do I know the exact nature of the legal claims. I’ll update when I get more.

Update:

Just got the complaint and motion for preliminary injunction filed by Citadel and the hedge fund has come out smoking, calling this a case of “industrial espionage.” The big hedge fund is suing Malyshev, his two partners and the upstart fund.

  •