Jeff Runnfeldt, who left Citadel LLC three years ago, is returning to start a stock-picking unit at Ken Griffin’s hedge fund firm.
“We are so excited to welcome Jeff back to the team as we expand our equities platform,” said Katie Spring, a spokeswoman for Chicago-based Citadel, which has $26 billion in assets.
Runnfeldt, 49, will join next month and the group is set to start trading in the fourth quarter, according to a person with knowledge of the matter, who asked not to be identified because the plans are private. The unit, which will be run out of San Francisco, seeks to have as many as 10 teams overseeing $1 billion without borrowed money, the person said.
Runnfeldt plans to hire some of his former colleagues at Citadel back to the hedge fund, the person said. Runnfeldt didn’t return a telephone message seeking comment.
Runnfeldt left Citadel in August 2012 after running its global equities group with Brandon Haley and Steve Weller. Citadel’s equity fund has returned about 9 percent this year through May, the person said. Equity hedge funds returned 4.4 percent in the same period, according to data compiled by Bloomberg.
Runnfeldt joined Citadel in 2002 and was named head of financials in 2004. Before Citadel, he worked at firms including Montgomery Asset Management and BT Alex Brown after starting out as a bank examiner at the Federal Reserve Bank of San Francisco, according to a Citadel biography.