Kenneth Griffin Influence in the Finance Industry
After graduating from Harvard University, Frank Meyer, a prominent investor and the founder of Glenwood Capital LLC., gave Griffin $1 million to invest. Ken Griffin on valuewalk surpassed Meyer’s expectations with his success. Meyer made 70 percent return on the particular investment.
Griffin founded Citadel in 1990 with around $4.6 million. By the year 1998, the hedge firm had grown to a staff of over 100 employees with $1 billion investment capital. In the year 2002, Griffin was incorporated in the CFO Magazine’s Global 100. It is a list of the world’s most influential personalities in the finance industry. His maiden appearance on the coveted Forbes 400 was in the year 2003, with a net worth of around $650 million. At age 34, Ken Griffin was the youngest self-made personality on the prestigious list. In 2004, the Fortune magazine ranked the hedge fund guru, who was just 35 as the eighth wealthiest American under the age of 40 in the class of self-made, US-based wealth. In the year 2006, he was the fifth-youngest out of the seven candidates under 40 who were listed on the popular Forbes 400. In 2007, the investor had a net worth of approximately $3 billion. By the year 2014, his net worth was in the tunes of $5.5 billion. Griffin has been credited with implementing a mutual work culture and offering impressive perks to his employees. The perks include free lunch, fitness programs, personal gifts and museum tours. In 2015, he was featured as a panelist at the Milken Institute Global Conference, where he talked about his global firm, Citadel.
Griffin’s Views about Market Structure
Griffin has spoken on matters of financial policies and market structure as a business executive, and has also testified in numerous government hearings. He testified at an inquiry about “The Role of Financial Regulation in Influencing Equity Market Structure As well As Electronic Trading”. In the interview, he emphasized the need to have financial regulations matched with the trends in market structure. It is to promote fairness and resilience of the US Equity markets. Together with NASDAQ Vice President, Thomas Whittman and Jeff Sprecher, CEO and founder of the NYSE, he voiced his concern about financial regulations failing match with trends in market structure. In 2008, Griffin criticized the risk management culture of Wall Street. He noted that as an industry, investors have a responsibility to control risk in a prudent way. He said that the capital markets are managed by right-out-of business school young persons who have encountered very little in business. He claimed that they lacked sufficient wisdom. Griffin also stated that as an industry, the investors dropped the ball. He proposed that the industry overhauls its philosophy and accepts more regulation. He explained his opinions on control and risk management in 2008, in a newspaper article. He was quoted saying that the unwillingness of S.E.C and the Federal Reserve to impose working capital restrictions worsens the risk-taking environment. It is because banks are acting as no-limit poker players. Later in the year 2008, he appeared before the US House Committee on Oversight and Government Reform.