Ken Griffin’s Citadel is imposing non-compete periods of up to two years on some investment professionals, including analysts, as the multi-strategy hedge fund takes an increasingly aggressive approach to retaining talent and protecting its investment strategies, according to a report by Bloomberg.
The report sits unnamed people familiar with the arrangements as revealing that the Miami-based firm is linking the length of the garden leave to an employee’s total compensation. Analysts face a minimum of 12 months away from the industry, while higher-paid portfolio managers and analysts can be subject to longer restrictions of as much as two years.
The terms are significantly more restrictive than those typically seen at other major multi-strategy hedge funds, where analyst non-competes generally run for nine to 12 months.
The approach is already drawing criticism from competitors. One hedge fund founder described the lengthy restrictions on analysts as excessive, arguing that the provisions could give Citadel disproportionate leverage over younger investment professionals.
Citadel, which manages about $71bn, has long used stringent employment agreements. Its portfolio managers faced non-competes averaging around a year in 2020, with some employees required to remain on garden leave for 18 months to secure deferred compensation. Some of those arrangements were subsequently extended to 21 months.
Griffin has been a prominent advocate of tougher non-compete rules. He backed Florida legislation that allows garden-leave provisions of up to four years, with the law taking effect in July 2025.
