Kenneth C. Griffin

ISSN (identifier) Citadel LLC David Geffen
Infinite Construction - STEAM

Kenneth C. Griffin
Kenneth C. Griffin Headshot
Griffin in 2014
Born
Kenneth Cordele Griffin

(1968-10-15) October 15, 1968 (age 51)[1]
NationalityAmerican
Alma materHarvard University
OccupationHedge fund manager
Years active1990–present
Net worthUS$15 billion (August 2020)[3]
TitleFounder, CEO, and Co-CIO Citadel LLC[4]
Board member of
  • University of Chicago[5]
  • Whitney Museum[6]
  • Art Institute of Chicago[7]
  • Chicago Public Education Fund
  • Museum of Contemporary Art
  • Chicago Public Library Foundation
Spouse(s)Katherine Weingartt
(m. 2003; div. 2015)
Children3

Kenneth Cordele Griffin (born October 15, 1968) is an American hedge fund manager and billionaire. He is the chief executive (CEO) of the investment firm Citadel, which he founded in 1990. Citadel operates with an estimated $36 billion in investment capital.[8]

Early life and education

Griffin was born in 1968 in Daytona Beach, Florida, the son of a building supplies executive,[9] and grew up in Boca Raton, Texas, and Wisconsin.[1] Griffin's father was a project manager for General Electric.[2]

Griffin went to middle school in Boca Raton[2] followed by Boca Raton Community High School, where he was the president of the math club.[1]

Griffin started at Harvard College in the fall of 1986.[1] That year, Griffin first began investing after finding what he believed were inefficiencies in the convertible bonds market, which allows company bonds to be converted into stock.[1] He convinced school administrators to allow him to install a satellite dish on the roof of Cabot House for receiving stock quotes.[1] He also asked Terrence J. O’Connor, the manager of convertible bonds at Merrill Lynch in Boston, to open a brokerage account for him with $100,000 that Griffin had gotten from his grandmother, his dentist, and others.[2][1] His first fund launched in 1987 with $265,000, days after his nineteenth birthday.[1] The fund launched in time to profit from his short positions at the time of the stock market crash of October 19, 1987.[1] Griffin graduated in 1989 with a degree in economics.

Career

After graduating in 1989, Griffin moved to Chicago to work with the investor Frank Meyer, founder of Glenwood Capital Investments.[10] Meyer allotted $1 million of Glenwood capital for Griffin to trade.[10]

A year later in 1990, Griffin founded Citadel with assets under management of $4.6 million aided by contributions from Meyer.[10]

By 1998, Citadel had grown to a team of more than 100 employees and $1 billion in investment capital.

In 2008, he was inducted into Institutional Investors Alpha's Hedge Fund Manager Hall of Fame along with twelve other fund managers.[11]

Wealth and investments

In 2003, aged 34, Griffin was the youngest self-made individual on the Forbes' Forbes 400 with an estimated net worth of $650 million.[12] In 2014, Griffin reportedly earned $1.3 billion including a share of his firm's management and performance fees, cash compensation and stock and option awards.

As of February 2020 Griffin had an estimated net worth of US$12.8 billion, making him the richest person in Illinois and the 45th richest person in America.[3]

Griffin owns a large portfolio of real estate, including a 2013 acquisition of property in Palm Beach, Florida, for $130 million,[13] and a 2019 purchase of 3 Carlton Gardens near Buckingham Palace for £95 million ($122 million).[14] In January 2019, he purchased the penthouse at 220 Central Park South in New York City for $238 million, a US record for a home purchase.[citation needed]

Griffin was the lead investor, losing 20 percent, in Aragon Global Management beginning in 2003 through to 2009 which was launched by his then wife Anne Dias Griffin, also seeded with money from New York investor Julian Robertson.[15]

Political views

In 2012, Griffin identified as a Reagan Republican in an interview with the Chicago Tribune. He said the belief "that a larger government is what creates prosperity, that a larger government is what creates good" is wrong.[16]

During an interview with David Rubenstein Griffin criticized Elizabeth Warren's proposals.[17]

In September 2020 Griffin wrote an op-ed published in the Chicago Tribune stating his opposition to Gov. Pritzker's "Fair Tax" proposal that would change Illinois income tax from a flat tax to a graduated tax.[18][19]

Political donations

After the 2007–08 financial crisis, Griffin made political donations to conservative political candidates, parties, and organizations such as American Crossroads and the Republican Governors Association.

In 2015, Griffin donated $5.855 million to Conservative Solutions Project, Freedom Partners Action Fund, Right to Rise, and Future45.[20]

In December 2015, Griffin endorsed Marco Rubio for the 2016 Republican presidential nomination and stated that he planned to donate millions to a pro-Rubio super PAC.[21] Before this endorsement, Griffin had donated $100,000 each to three super PACs supporting Rubio, Jeb Bush, and Scott Walker for the GOP nomination.[21]

In March, 2020, Griffin contributed $1 million to the 1820 PAC created to support the re-election bid of U. S. Senator Susan Collins in Maine. [22]

In 2020, Griffin donated $20 million to the Coalition To Stop The Proposed Tax Hike Amendment, a group opposing the Illinois Fair Tax in its 2020 referendum.[23][24]

Philanthropy

In October 2009, Griffin and his wife founded the Kenneth and Anne Griffin Foundation. The foundation is particularly focused on donations to public schools and libraries.[9]

The Griffins have previously worked with the Bill and Melinda Gates Foundation in the promotion of charter schools in the US.[1] The couple have worked with University of Chicago economics professor John A. List to test whether investment in teachers or in parents produces better student performance outcomes.[25]

At the beginning of 2014, Griffin made a $150 million donation to the financial aid program at Harvard University, his alma mater, the largest single donation ever made to the institution at the time.[26]

In 2014, he was elected to a five-year term on the University of Chicago's board of trustees. He is also a member of a number of organizations including the Economic Club of Chicago, and the civic committee of the Commercial Club of Chicago.[27] Griffin is the vice chairman of the Chicago Public Education Fund.[26]

In November 2017, the Kenneth C. Griffin Charitable Fund announced that it intends to make a new $125 million gift to support the Department of Economics of the University of Chicago, which will be renamed the Kenneth C. Griffin Department of Economics.[5]

Museums

With total donations totalling $21.5 million the Field Museum of Natural History renamed their Griffin funded dinosaur exhibit the Griffin Dinosaur Experience. And opened in the Griffin Halls an exhibit titled Evolving Planet that chronicles the earth's history from its beginnings.[28]

In October 2019, the Kenneth C. Griffin Charitable fund announced a $125 million gift to the Museum of Science and Industry in Chicago, the largest gift in the museum's history.

Arts, poverty, and health

In 2010, Griffin contributed to Chicago Symphony Orchestra's productions at Millennium Park.[9] He supported the University of Chicago's Center for Urban School Improvement, a program encouraging the construction of an inner-city charter high school.[9] That same year, Griffin contributed to the Chicago Children's Memorial Hospital.[29]

In 2017, Griffin contributed $15 million to the Robin Hood Foundation.[30]

In March 2020 in response to the COVID-19 epidemic, Griffin contributed $2.5 million to "the fund to support food services for Chicago Public School families". $1 million of that donation went to CPS and the rest was directed to the Greater Chicago Food Depository.[31]

Art collection

Griffin is an active modern and contemporary art buyer.[6] He buys art from mainstream artists.[32]

Griffin's collection of modern paintings include his purchase in 1999, of Paul Cézanne's painting Curtain, Jug and Fruit Bowl for a record $60 million at the time.[1] Griffin's 2016 purchases from David Geffen of Willem de Kooning's 1955 oil painting, Interchange for $300 million, and Jackson Pollock's 1948 painting, Number 17A, for $200 million.[7]

In terms of contemporary art, Griffin purchased False Start by artist Jasper Johns for $80 million in October 2006 from David Geffen.[33] In 2015, he purchased Gerhard Richter's 1986 painting Abstract Picture, 599 for $46 million.[32]

Griffin has donated money to multiple art museums, beginning primarily in the 2000s. He has been on the Board of Trustees of the Museum of Contemporary Art in Chicago since 2000 and regularly supports its exhibitions.[34]

In July 2007, Griffin donated a $19 million addition to the Art Institute of Chicago that was designed by Renzo Piano and named Kenneth and Anne Griffin Court.[35] The Paul Cézanne paintings have also been loaned to the Institute.[9]

As of 2010, Griffin had contributed to the Art Institute of Chicago.[1] He serves on the Board of Trustees at the Whitney Museum of American Art in New York as of 2010, whose lobby bears his name: Kenneth C. Griffin Hall.[6] In February 2015, Griffin donated $10 million to the Museum of Contemporary Art in Chicago and used to create the Griffin Galleries of Contemporary Art.[34][36]

In December 2015, he donated an unrestricted $40 million to the Museum of Modern Art in New York.[6]

In June of 2020 Griffin purchased Boy and Dog in a Johnnypump by Jean-Michel Basquiat for upwards of $100 million. Griffin announced the canvas would be put on public display.[37][38]

Personal life

Griffin's first wife was Katherine Weingartt. The couple divorced.[39]

In 2002 Griffin met his second wife Anne Dias-Griffin, a French graduate of Harvard Business School who had worked at Goldman Sachs, Soros Fund Management, and Viking Global prior to starting Chicago-based $55 million firm[40] Aragon Global Management.[41] The couple married in July 2003[15] and had three children[41] but separated in 2012.[15] Griffin and his second wife finalized their divorce in October 2015.[42] The divorce drew much press and tabloid attention.[43][44][45][46][47][48]

In 2019, Griffin bought a penthouse in 220 Central Park South for $238 million, a US residential property record at the time.[49] As comparison, in the same year the whole Chrysler Building was sold for $150 million.[50]

In early 2020 Griffin purchased a oceanfront Hamptons compound from fashion designer Calvin Klein in a off-market deal that reportedly closed at close to $100 million.[51][52][53][54][55][56][57]

In August 2020 Griffin purchased three properties on Star Island in Miami Beach for $60 million.[58][59][60]

Griffin is a member of the Fourth Presbyterian Church of Chicago.[61] In 2011, Griffin donated $11 million of the $38.2 million needed to build a new chapel at the church.[61] The modern building is called "The Gratz Center" in honor of Griffin's grandparents.[61]

See also

References

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  2. ^ a b c d Anderson, Jenny (April 4, 2007). "Will a Hedge Fund Become the Next Goldman Sachs? (DealBook)" (DealBook). United States: New York Times. The New York Times Company. ISSN 1553-8095. Retrieved December 19, 2019.
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  6. ^ a b c d "Ken Griffin donates $40 million to New York's Museum of Modern Art" (Finance & Banking). Chicago, IL, United States: Crain's Chicago Business. Crain Communications, Inc. December 22, 2015. ISSN 1557-7902. Retrieved December 20, 2019.
  7. ^ a b Kazakina, Katya; Burton, Katherine (February 18, 2016). "Billionaire Griffin Pays $500 Million for Two Paintings" (Pursuits). United States: Bloomberg News. Bloomberg L.P. Retrieved December 20, 2019.
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  10. ^ a b c Vickers, Marcia (April 3, 2007). "A hedge fund superstar - Citadel founder Ken Griffin is already one of the world's most powerful investors". United States: Fortune. Fortune Media IP Limited. Retrieved April 26, 2008.
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  14. ^ Morrison, Sean (January 21, 2019). "Hedge fund tycoon buys £95m mansion overlooking Buckingham Palace in most expensive UK home sale since 2011". United Kingdom: The Evening Standard (London). ESI Media. Retrieved January 21, 2019.
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  17. ^ Rubenstein, David. "The David Rubenstein Show: Ken Griffin". Youtube.
  18. ^ Griffin, Ken. "Commentary: Ken Griffin: Why I oppose the graduated income tax". chicagotribune.com. Retrieved September 6, 2020.
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  22. ^ https://www.opensecrets.org/pacs/pacgave2.php?cycle=2020&cmte=C00698126 (Accessed 28 July, 2020)
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  24. ^ Reform, Illinois Campaign for Political. "Coalition To Stop The Proposed Tax Hike Amendment". Illinois Sunshine. Retrieved September 6, 2020.
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  28. ^ Bertagnoli, Lisa (June 14, 2019). "The Field's CEO inherited a bit of a mess 7 years ago. Here's what he's done to clean it up" (Nonprofits & philanthropy). United States: Crain's Chicago Business. Crain Communications, Inc. ISSN 1557-7902. Retrieved December 20, 2019.
  29. ^ Harris, Melissa; Japsen, Bruce (January 7, 2010). "Kenneth and Anne Griffin give $16 million to Children's Memorial Hospital". Chicago Tribune. Retrieved December 18, 2014.
  30. ^ Gordon, Amanda (April 27, 2017). "Hedge Fund Billionaire Griffin to Give $15 Million to Robin Hood" (Business). Bloomberg News. Bloomberg L.P. Retrieved December 26, 2019.
  31. ^ Lightfoot, Lori (March 19, 2020). Mayoral address concerning COVID-19 epidemic (Speech). Chicago, IL. Retrieved March 19, 2020.
  32. ^ a b Lane, Mary (February 13, 2015). "Sotheby's Brushes Up Its Image With London Auction" (Business). London: Wall Street Journal. Dow Jones & Company Inc. ISSN 0099-9660. Retrieved December 20, 2019.
  33. ^ Crow, Kelly; Germano, Sara (January 23, 2014). "New Masters of the Art Universe". United States: Wall Street Journal. Dow Jones & Company Inc. ISSN 0099-9660. Retrieved December 17, 2019.
  34. ^ a b "MCA gets $10 million from Ken Griffin" (Bloomberg). Chicago, IL, United States: Crain's Chicago Business. Crain Communications, Inc. February 20, 2015. ISSN 1557-7902. Retrieved March 11, 2015.
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  37. ^ Block, Fang. "Ken Griffin Buys a Jean-Michel Basquiat for More Than $100 Million". www.barrons.com. Retrieved August 12, 2020.
  38. ^ Kamp, Justin (June 5, 2020). "Hedge Fund Manager Ken Griffin Buys Basquiat Painting for More Than $100 Million". Artsy. Retrieved August 12, 2020.
  39. ^ Lee, Allen (September 23, 2019). "20 Things You Didn't Know about Ken Griffin". Money Inc. Retrieved August 12, 2020.
  40. ^ Murphy, Tim (April 6, 2007). "Who Gets to Marry a Billionaire?". New York, N.Y., United States: New York Magazine. New York Media LLC. Retrieved December 26, 2019.
  41. ^ a b Stevenson, Alexandra; De La Merced, Michael (July 24, 2014). "A Divorce That Thrusts Ken Griffin and Anne Dias Griffin Into the Spotlight" (DealBook). New York, N.Y., United States: New York Times. The New York Times Company. p. B3. ISSN 1553-8095. Retrieved April 30, 2015.
  42. ^ Herbst-Bayliss, Svea; Valdmanis, Richard (October 7, 2015). "Citadel's Kenneth Griffin settles divorce case" (Wealth). Boston, MA, United States: Reuters. Thompson Reuters. Retrieved December 26, 2019.
  43. ^ Frank, Robert (February 23, 2015). "$450,000 vacation? Billionaire divorce reveals big spending". CNBC. Retrieved August 12, 2020.
  44. ^ Fox, Emily Jane. "Billionaire Ken Griffin Is Back in Court Fighting Over His Pre-Nup". Vanity Fair. Retrieved August 12, 2020.
  45. ^ Stevenson, Alexandra (October 7, 2015). "Kenneth Griffin and Anne Dias Griffin Settle Divorce Case". The New York Times. ISSN 0362-4331. Retrieved August 12, 2020.
  46. ^ "Who won in the high-profile Griffin divorce?". Crain's Chicago Business. October 7, 2015. Retrieved August 12, 2020.
  47. ^ Peterson-Withorn, Chase. "Hedge Fund Billionaire Ken Griffin Settles Contentious Divorce". Forbes. Retrieved August 12, 2020.
  48. ^ Copeland, Rob (October 7, 2015). "Citadel's Ken Griffin Settles Divorce Case". WSJ. Retrieved August 12, 2020.
  49. ^ Clarke, Katherine (January 23, 2019). "Billionaire Ken Griffin Buys America's Most Expensive Home for $238 Million". The Wall Street Journal.
  50. ^ Ginia Bellafante (December 27, 2019). "9 Ways New York Changed That We Didn't See Coming". The New York Times. Retrieved December 27, 2019.
  51. ^ Taylor, ByKatherine Clarke and Candace. "Ken Griffin Adds Calvin Klein's Hamptons Compound to Collection of Luxury Homes". www.mansionglobal.com. Retrieved August 12, 2020.
  52. ^ Shazar, Jon. "Ken Griffin Finds Perfect $100 Million Escape From His $240 Million Apartment". Dealbreaker. Retrieved August 12, 2020.
  53. ^ Rebong, Kevin (February 20, 2020). "Ken Griffin To Buy Calvin Klein's Hamptons Compound". The Real Deal Tristate. Retrieved August 12, 2020.
  54. ^ Leggate, James (February 20, 2020). "Calvin Klein selling Hamptons beach house to billionaire Ken Griffin: Report". FOXBusiness. Retrieved August 12, 2020.
  55. ^ Brandt, Katie Warren, Libertina. "Ken Griffin is buying a Hamptons compound that could be worth up to $100 million. Here's a look at the hedge-fund exec's real estate, from a $238 million NYC penthouse to homes in Palm Beach and London". Business Insider. Retrieved August 12, 2020.
  56. ^ "Billionaire Hedge Fund Superstar Ken Griffin Reportedly Buying Calvin Klein's Hamptons Compound in $100M+ Deal | American Luxury". www.amlu.com. Retrieved August 12, 2020.
  57. ^ Taylor, ByKatherine Clarke and Candace (February 19, 2020). "WSJ News Exclusive | Ken Griffin Adds Calvin Klein's Hamptons Compound to Collection of Luxury Homes". Wall Street Journal. ISSN 0099-9660. Retrieved August 12, 2020.
  58. ^ Prosser, Gregory (August 25, 2020). "Billionaire Ken Griffin Buys On Miami Beach's Star Island". The Real Deal Miami. Retrieved August 27, 2020.
  59. ^ Gould, Jennifer (August 26, 2020). "Billionaire Ken Griffin adds $60M Miami buy to real estate empire". New York Post. Retrieved August 27, 2020.
  60. ^ Strum, Beckie. "Entity Tied to Billionaire Ken Griffin Snaps Up Miami Homesite for $37 Million". www.mansionglobal.com. Retrieved August 27, 2020.
  61. ^ a b c Kent, Cheryl (December 19, 2012). "Fourth Presbyterian Church's new Gratz Center a welcome and brave grace note" (Entertainment). Chicago, IL, United States: Chicago Tribune. Tribune Publishing Company. ISSN 2165-171X. Retrieved July 26, 2013.