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how we can do it better. . . . There is a huge emphasis on learning, sharing, and teamwork."

Griffin likes to hire people right out of college so he can teach them trading. "We are a very competitive organization. Most of the people are still in their thirties." He also feels that being in Chicago is an advantage—Citadel is one of the preeminent financial places to work in Chicago and there are few competitors. As a result, poaching is not common. Employees tend to be loyal, and a long-term outlook is part of Citadel's culture.

"I work with some of the brightest and most talented people in the world," Griffin says. All of us at Citadel are aware that we are building something very special. I love the challenges, the competition, the intellectual stimulation. That's what drives me."

While his business takes up most of his time, Griffin likes to play soccer and travel. He is on the permanent collection committee of Chicago's Museum of Contemporary Art.

THE INDUSTRY

Griffin feels that the 1990s have been a favorable backdrop for hedge funds. The one exception has been Japan, which has been difficult. The year 1998 was one of Citadel's best; the fallout of Long-Term Capital Management and other factors provided a great opportunity to acquire assets at distressed prices across the board.

He feels that a transition is taking place. In a bull market in equities, there is more money to go around. In a bear market, the markets are less easy, and consolidation will occur as the pie shrinks and the environment becomes more difficult.

He observes that the larger number of market participants has eroded some of the hedge fund managers' edge. Ten to 15 years ago, hedge fund managers could profit before institutional investors on the release of earnings reports and changes in Wall Street firms' opinions. But over the years, larger mutual funds and insurance companies have become more nimble in managing their portfolios. This situation, plus day trading, has taken away some of the hedge fund managers' advantages.

Griffin feels the future will be more challenging for global macro managers. In the 1980s and 1990s, macro traders had the advantages listed earlier as well as access to government officials and top economists. Now, with more broadly disseminated information, their edge