Richard Schimel will join Citadel Group to head and build out a new equity hedge fund team, the fourth equity strategy that Citadel has added, said Zia Ahmed, a Citadel spokesman.
The new multisector equity business will be based in Greenwich, Conn., and the strategy Mr. Schimel and his team will develop will be used in Citadel's flagship Kensington and Wellington multistrategy hedge funds. Mr. Schimel's title has yet to be determined for this new role.
Mr. Schimel is founder and chief investment officer of Sterling Ridge Capital Management, a firm he launched in 2013 after the closure in late 2012 of Diamondback Capital Management after assets declined following an insider trading scandal. Mr. Schimel was not charged with wrongdoing.Mr. Schimel is in the process of winding down Sterling Ridge's hedge fund prior to joining Citadel in July, Mr. Ahmed said.