Citadel has accused former portfolio manager Daniel Shatz, now head of global credit at Marshall Wace, of violating employment agreements and misappropriating confidential information to set up a competing team, according to a report by Bloomberg.
The hedge fund detailed the allegations in court filings in response to Marshall Wace’s petition seeking to quash subpoenas related to Shatz’s recruitment.
According to Citadel, Shatz accessed proprietary documents, including recruiting lists, strategic roadmaps for building a credit group, and candidate evaluations, while still employed and during a 15-month “garden leave” before joining Marshall Wace in late 2024. Citadel claims he continued recruiting team members during this period.
The subpoenas demand communications between Shatz and Marshall Wace regarding his hire, internal discussions of the recruitment, and records involving headhunters and key hires allegedly linked to Shatz. Citadel argues the materials are critical to its arbitration claims that Shatz breached fiduciary duties and post-termination covenants, while Marshall Wace contends the information contains sensitive trade secrets unrelated to the arbitration.
The dispute highlights the intense competition among hedge funds, including Point72, Millennium, and Jain Global, for credit talent. Citadel said the court should uphold the subpoenas, which were already approved by an arbitration panel.
The case is ongoing in New York State Supreme Court, New York County (In the Matter of the Application of Marshall Wace North America LP, 650619/2026).
