New York (HedgeCo.Net) – Misha Malyshev, a trader for Citadel Investment Group who headed two of the firm’s hedge funds, has resigned according to a report by Bloomberg News.

Malyshev seemingly had a successful run with Citadel, working for the firm for 6 years and helping the two hedge funds post returns of about 40 percent last year.  The hedge funds are estimated to manage about $2 billion in capital.

Malyshev used “high-frequency” trading, which is a computer-dependent strategy that aims to exploit hidden behavior trends in the market, to run the funds.  As opposed to real-time data analysis, high-frequency trading uses tick data to uncover information and trends that may be invisible to the average analyst.  Complex algorithms and PhD’s are usually standard with this method of trading.

According to the report, Malyshev will take some time off and is unlikely to start working for another fund within the next 18 months, because of contractual obligations.

Citadel, which is run by Kenneth Griffin, seems to be on the up and up this year after a disappointing 2008.  Griffin has informed investors that they will be able to make withdrawals from the firm’s biggest funds, Kensington and Wellington.  The two funds were frozen last year after losing over half of their value.

Julie Scuderi
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Reuters - Citadel Investment Group LLC trader Misha Malyshev, who helped two of the firm’s hedge funds gain about 40 percent last year, has resigned, Bloomberg News said on Thursday, citing a person familiar with the firm.

Malyshev was head of "high-frequency" trading, a computer-dependent strategy used by two of the firm’s hedge funds, and left this week with two members of his team, the report said, citing the person.

Malyshev is unlikely to start or work with another fund in the next 18 months because of contractual restrictions, the report said, citing the person.

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Tags: citadel-investment-group, citadel-investment-group-llc, contractual restrictions, high-frequency, misha, reuters