When You're A Hedge Fund Manager, You Can Play Real Life Monopoly
Ken Griffin, the billionaire founder of hedge fund behemoth Citadel, is taking advantage of low mortgage rates as he recently snapped up another property. Just kidding, he's probably not worried about mortgage rates.
Griffin purchased another Palm Beach property for $99MM, making it the second-most expensive real estate deal in the posh town's history. He's reportedly spent at least $350MM assembling adjacent properties since 2012. Griffin will now have a quarter-mile of beach frontage on about 20 acres where he can sit in the humidity and check stock prices.
Griffin has now spent at least $459MM this year across three real estate transactions. In addition to the Palm Beach purchase, Griffin spent a record $238MM for a penthouse overlooking Central Park and $122MM for a home near Buckingham Palace.
With more than 300 people leaving Citadel's home state of Illinois per day, it would make sense if Griffin is planning his escape to Florida, which is a much friendlier tax environment.
If this bull market ever ends and Citadel gets stuck with the wrong counterparty, taxpayers may not be so happy about them getting bailout money again given these real estate transactions. However, if they ever need a hand, they now have the one and only Dr. Ben S. Bernanke who can make some calls to his old colleagues.
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