In the plush ambience of a hotel ballroom overlooking the shimmering expanse of the South China Sea, a gathering of 24-year-old Taylor and thirteen other university students huddles together. Clad in hoodies and sneakers, they’re not lounging, but rather engaged in a symphony of code on their laptops. This isn’t your typical summer camp scene; the backdrop speaks volumes. Two imposing security guards outside the hall signal that this isn’t just a getaway—it’s an initiation into the world of extraordinary opportunities.
These students have taken business class flights, journeying from far-flung locations such as California and Singapore, to converge at the opulent Fullerton Ocean Park Hotel in Hong Kong. Platters of crab meat salad, delicate croque monsieurs, and tantalizing skewers of prosciutto and melon lay close by. This isn’t a vacation; it’s an immersive experience orchestrated by Citadel, the finance giant, as they meticulously handpicked these interns from a staggering pool of 69,000 applicants. This elite group has been chosen by Citadel and Citadel Securities LLC, helmed by billionaire Ken Griffin, to be groomed as the next wave of mathematical and computer virtuosos—a generation that is crucial in the intricate world of market trading.
Spanning across eleven intense weeks, the students’ path is a kaleidoscope of experiences. Here, they step into the shoes of hedge fund traders, negotiating with virtual counterparts, crafting code that powers automated strategies, and dissecting simulations infused with news feeds and macro data. It’s all part of the meticulously crafted program aimed at unveiling the enigmatic domain of trading and market-making. And the compensation? A whopping $120 an hour—translating to a staggering $19,200 a month.
Kristina Martinez, Citadel’s managing director responsible for human resources in Asia-Pacific, doesn’t mince her words: “There’s only a finite pool of truly exceptional students.” And it’s this pool that Citadel aims to tap into. The complexity of Citadel’s operations, coupled with the far-reaching influence of companies interacting with them, underscores the urgency of spotting and nurturing exceptional talents early on.
Ken Griffin, the 54-year-old financial visionary currently ranked as the world’s 33rd-richest individual, understands the potential of promising students. His journey into finance commenced at Harvard University, where he traded convertible bonds from his dormitory room. He once even enlisted janitors to install a satellite dish on his dorm’s roof to access real-time market prices. This ingenuity paved the way for a personal fortune of approximately $37 billion.
Under Griffin’s leadership, Citadel Securities has emerged as a pivotal entity underpinning the intricate workings of the US stock market. With the capability to execute a staggering $463 billion in trades daily, the company acts as a counterparty, offering liquidity while sometimes buying or selling shares themselves. At the heart of Citadel’s prowess lies mathematics and coding—highly coveted skillsets that are increasingly sought after across the banking and investment spectrum. However, these skills are especially paramount at Griffin’s firms, where quantitative researchers and engineers devise groundbreaking trading strategies and deploy algorithms that revolutionize the trading process.
The Hong Kong boot camp is but one facet of Citadel’s global approach. With an increasing emphasis on Asia, driven by the company’s regional expansion, Citadel has deployed similar boot camps worldwide. Despite some Wall Street entities retracting from the region, Citadel’s hedge fund and market maker divisions have expanded their Asia-based workforce, doubling the headcount since 2020 to over 400 professionals.
The internship experience is a symbiosis of learning and application. The interns are assigned significant projects, collaborating alongside the firms’ accomplished staff who generated a combined revenue of $35.5 billion in the preceding year. A select few interns even receive full-time job offers shortly after the program’s conclusion. Others return as part-timers, sometimes as early as their sophomore years. Taylor, a standout intern, attests to the program’s uniqueness, stating, “It was so different—none of my prior internships offered an off-site experience like this.” The challenges posed by the projects not only reflect real-world applications but also showcase the dynamic and exhilarating nature of the work.
Taylor’s journey to this coveted internship mirrors the exceptional nature of the program’s participants. With prior experiences at major tech companies like Meta Platforms Inc., Taylor, a computer science major, exemplifies the caliber of talent that Citadel seeks. Drawing students predominantly from prestigious universities, the program cherishes individuals with math Olympiad accolades and math doctorates from esteemed institutions like Stanford University. It’s a realm where MBAs rarely tread.
Martinez emphasizes that competence in subjects like math and physics is merely the entry point. What distinguishes successful candidates is their ability to exhibit curiosity, accept feedback gracefully, ask the right questions, and collaborate seamlessly. It’s a delicate balance—an interplay between competition and teamwork.
Beyond the algebraic realm, the students’ evaluation encompasses qualities that transcend the conventional. Adaptability, teamwork, agility in the face of new information—these attributes form the crucible in which these budding professionals are honed. Citadel seeks individuals who not only excel academically but also demonstrate a fervor for going beyond the expected, a spirit that resonates with the company’s own pursuit of the unknown.
In the hallowed halls of the Fullerton Ocean Park Hotel, where brilliance converges and aspirations unfold, Citadel’s internship program becomes more than just an experience. It becomes a defining chapter, a crucible for future leaders, and an unparalleled gateway to unlocking opportunities that resonate across the financial landscape.
Talent Battle: Citadel’s Pursuit of Exceptional Minds
The unwavering commitment that Citadel invests in honing these students stems from an intense competition for top-tier talent. In the ever-evolving landscape, Griffin’s firms find themselves in a fierce rivalry against tech giants like Meta, ByteDance Ltd., and Alphabet Inc. Moreover, they’re navigating the competitive terrain of market-maker contenders such as Optiver Holding BV, Jane Street Capital LLC, and Susquehanna International Group.
Across the United States, a survey of 16 elite firms conducted by Levels.fyi, an analyzer of compensation data, revealed that median intern pay witnessed a notable 19% surge. Meanwhile, within hedge funds and proprietary trading entities, hourly remuneration leaped 29% year-over-year, now standing at $111—an elevation where Citadel shines brightly. This fierce compensation landscape extends beyond finance, as industries like medical research—a domain poised to harness AI and quantitative analysis skills—are also vying for talent.
Beyond monetary incentives, many finance interns are entitled to additional benefits encompassing signing bonuses, living stipends, and access to corporate accommodations. These comprehensive packages often mirror those offered to full-time employees. On Wall Street’s upper echelons, luxury hotels, business-class flights, and meticulously structured internships have evolved into standard practice, observes Tony Ernest, managing partner at hedge fund talent consultancy Monroe Partners Asia in Singapore.
Ernest states, “Gone are the days when interns did dog work.” He asserts that a successful internship experience becomes a potent recruitment tool, captivating interest from fellow students at the same institutions.
The landscape of campus recruitment has shifted dramatically, commencing much earlier and extending throughout the year. Human resources departments are no longer relegated to merely sorting resumes and making sporadic school visits. As Ernest notes, “Never did hedge funds go to campus 10 years ago.” Now, they are strategically courting the crème de la crème, amassing the top 1% of graduates.
Within this competitive milieu, Kristina Martinez and her team undertake a meticulously targeted approach. They pinpoint professors from institutions renowned for nurturing individuals who excel at Citadel. The team also scours through Datathons, where participants grapple with intricate datasets and present their insights. Under the Discover Citadel initiative, first and second-year students can place themselves in the spotlight, with the top applicants gaining invitations to exclusive one or two-day events.
The company deploys a multi-pronged recruitment strategy, including targeted approaches and referrals, to identify high-potential candidates. These prospects are subsequently invited to intimate dinner sessions held in global hubs like Hong Kong, New York, and Singapore. While Citadel and Citadel Securities maintain a shroud of secrecy around their hiring rate, it’s evident that only the truly exceptional individuals secure a spot, according to Martinez.
Identifying these stars often occurs early during the internship tenure. Martinez emphasizes that this is the moment when the company’s managers delve deep into understanding these prodigies—learning about their backgrounds, families, and aspirations—aiming to cement their return.
In the heart of her Citadel office in Singapore, Taylor races against the clock to conclude her ambitious project. The tasks assigned to each intern vary, depending on whether they engage in quantitative research, trading, or operational roles. However, every task is rooted in addressing tangible business challenges. These aspiring professionals are required to present a concise 15-minute overview of their work, with the potential for their solutions to be implemented.
For Taylor, tasked with enhancing the efficiency of a specific program, the experience has been a lesson in thinking expansively. She shares her key takeaway: “To think bigger, not just focus on the issues in front of you, but more of the why and impact.”
Reflecting Citadel’s commitment to holistic growth, the students participated in a charitable endeavor during their off-site training. In Hong Kong, they engaged in packaging and delivering meals to those in need. Embracing Citadel’s ethos, they were grouped into teams, each vying to be the swiftest—a microcosm of the spirited determination that characterizes their journey at Citadel.
Content Source : https://fortune.com/2023/08/28/citadel-internship/