1. stop hemmorage
2. lose their edge in market (buying order flow from RH)
3. go to court & hopefully settle for less than their AUM.
All in all, this seems like a desperate move. Every securities lawyer is celebrating right now because they have a home run case.
Either way, Citadel is screwed but the HF managers probably decided its better to call it a day at -30% than over -100%.
1. stop hemmorage
2. lose their edge in market (buying order flow from RH)
3. go to court & hopefully settle for less than their AUM.
All in all, this seems like a desperate move. Every securities lawyer is celebrating right now because they have a home run case.
Either way, Citadel is screwed but the HF managers probably decided its better to call it a day at -30% than over -100%.