Ken Griffin's Citadel adopted a unique and aggressive strategy to build its energy trading business following the collapse of Enron. Unlike competitors who only hired a few senior Enron staff, Citadel systematically interviewed hundreds of Enron employees across all levels and functions. This extensive intelligence gathering aimed to reverse-engineer Enron's competitive edges and operational knowledge, ultimately allowing Citadel to build a detailed understanding of how the business generated profits and who its key performers were, without having to employ most of them.
This meticulous approach paid off, with Citadel's energy business becoming an "enormous success." While Citadel interviewed hundreds, it only hired about five former Enron employees. This strategy distinguished Citadel as an aggressive hedge fund operator, willing to extract operational knowledge from a distressed rival as a targeted intelligence operation, rather than merely waiting for opportunities. Citadel's current energy trading operations are extensive, moving over 100,000 MMBtu of gas per day via US and Canadian pipelines.
Citadel has continued to expand its presence in the US natural gas market. In 2024, it agreed to a $1 billion deal to acquire assets from Paloma Natural Gas LLC, gaining access to acreage and producing assets, though it won't operate them directly. This move, relatively unusual for a hedge fund, further deepens Citadel's involvement beyond trading into the drilling and production side of the industry. The firm also invested in Ultra Petroleum Corp in 2020, later divesting its stake in 2023 when it was PureWest Energy.
Citadel’s commodities investments have been highly profitable, generating at least $4 billion in profits in each of the last three years, accounting for roughly half of the firm's record $16 billion in 2022. The firm was founded in 1990 by Ken Griffin and has grown to manage over $67 billion in assets as of January 2026. Griffin started his trading career from his dorm room at Harvard University.
Citadel's expansion in the energy sector extends internationally. In June 2024, Citadel agreed to purchase Japanese power company Energy Grid, marking a significant US investment in Japan's wholesale energy market. Further demonstrating its global reach, in October 2025, Citadel agreed to acquire FlexPower, a Hamburg-based renewable energy trading firm specializing in trading and risk management across six European countries, managing over 1,700 megawatts of power capacity. These acquisitions highlight Citadel's broader strategy to expand its presence in global energy and commodities markets.
