Citadel, Sensitive Data, and Plusfunds’ Bankruptcy

Apparently hedge fund Citadel is trying to purchase data from bankrupt Plusfunds that would detail trading strategies at some of its major competitors. The latter company had run a hedge fund index underlying which were trading strategies run by various well-known hedge funds, like Bridgewater, Vega Asset, and so on. By buying the data — at a price of $75,000 — Citadel would have access to detailed data on how some of its competitors trade stocks.

It is another example of how data is forever, and in particular how the data that businesses throws off turns out to be more valuable than people think. You have to give the folks at Citadel credit for coming up with the idea of buying this trading data out of Plusfunds’ bankruptcy. Clever stuff.

Update: Greg Newton tells me via email that he beat everyone to this story. He has some typically savvy comment on the issue, so go read ’em.