Citadel adds 2 fixed-income fund managers from Goldman Sachs

Uberto Palomba will join Citadel's Global Fixed-Income Fund in London, while Jonathan Tipermas, will work for the fund in New York, Katie Spring, a spokeswoman for the Chicago-based hedge fund manager, said by telephone.

Mr. Palomba was Goldman Sachs' co-head of emerging markets trading for Europe, the Middle East and Africa, while Mr. Tipermas led Goldman Sachs' dollar swaps trading desk. Both were managing directors at the investment bank.

Neither could be reached for comment. Spokesmen for the bank declined to comment on the departures.

Citadel is expanding the fixed-income operation it started after hiring former J.P. Morgan Chase & Co. proprietary trader Derek Kaufman in 2008 to widen its range of funds beyond Kensington and Wellington, its two biggest pools. The hedge fund has built the unit by hiring from lenders, including Bank of America Corp. and Credit Suisse Group AG, which have seen traders leave since the financial crisis of 2008 as regulators press firms to cut back their proprietary-trading activities.

Citadel's fixed-income fund, which manages $2.2 billion, gained 5% in January after climbing about 20% in 2013, according to a person with direct knowledge of the performance who asked not to be identified because the fund is private. Hedge funds fell 0.14% on average last month and posted a 7.4% gain in 2013, according to data compiled by Bloomberg. Mr. Kaufman's team also manages money for Kensington and Wellington, the person said.