Ken Griffin’s hedge fund Citadel takes a 5% stake in Western Alliance Bancorp
Billionaire investor Ken Griffin’s hedge fund Citadel has taken a 5.3% stake in Western Alliance Bancorp amid turbulence within the banking sector after Silicon Valley Financial institution’s collapse, based on a regulatory submitting launched Monday . Citadel purchased 5,781,968 shares of Western Alliance, based on the submitting. The hedge fund owns hundreds of particular person shares and infrequently trades out and in of positions rapidly. Nonetheless, it is pretty uncommon for Citadel to take large stakes that require separate filings. A spokesperson at Citadel declined to remark. WAL 5D mountain Western Alliance Bancorp The financial institution inventory rallied greater than 40% Tuesday following a 47% sell-off on Monday. The large comeback adopted regulators’ extraordinary actions to backstop all depositors in failed Silicon Valley Financial institution and Signature Financial institution and provide further funding to different troubled establishments. On Monday, Western Alliance mentioned it noticed solely “average” outflows , and its money reserves exceed $25 billion. The financial institution had $67 billion in complete belongings as of the top of 2022 . “Western Alliance has taken further steps to strengthen its liquidity place to make sure that we’re ready to fulfill all of our consumer funding wants, together with growing our borrowing capability,” the financial institution mentioned in a press release. Citadel outperformed the S & P 500 final month, persevering with its robust efficiency. Its multi-strategy flagship Wellington fund is up 2.8% this 12 months by way of February, CNBC beforehand reported. The hedge fund soared a whopping 38% in 2022, marking the agency’s greatest 12 months ever.