The talent war between Citadel and Balyasny Asset Management has flared up again with Ken Griffin’s Miami-based firm alleging that several Citadel employees misappropriated confidential information before leaving to join Balyasny, according to a report by Bloomberg.
This is the second time in as many years that Citadel has made such allegations against its multi-strategy rival and the report cites unnamed sources as saying that the firm has now sent a demand letter to Balyasny, which is typically seen as a final warning before legal action is taken.
While Citadel declined to comment to Bloomberg on the dispute, a spokesman for Balyasny said: “The allegations outlined in the letter are without merit”.
The talent was between the two firms dates back to 2021 when Citadel accused several employees who defected to Balyasny as being in breach of contract. As part of a settlement with Citadel in that case, Balyasny agreed not to poach staff or former staff from Citadel’s Global Fixed Income business for a fixed period of time. According to Bloomberg’s sources, that agreement expired earlier this year.
