i had a chance to sit down with hedge fund legend ken griffin, the ceo and founder of citadel.e talked about the shakeout in the industry. mr. griffin: it is a shakeout for active management. we see the rise of passive money in etf's, index products. we are seeing money come out of active management to passive structures. as that happens, the money is not pursuing alpha in the same way. that should make markets less efficient, creating a larger pool for those who remain. passive will be bigger, active smaller, and the firm's best able to assemble, analyze, and incorporate information in their investment decisions will earn outsized returns. erik: how large is the opportunity and billions of dollars for citadel? mr. griffin: in terms of how much cap we can manage? erik: yes. mr. griffin: can we manage $25 billion? we do manage $25 billion. $35 billion is probably outside our reach right now. there is both an analytical element and the psychological element that comes into play as you grow. imagine you are a portfolio manager in a hedge fund and you are accustomed today's were yo

anna: that was erik schatzker with ken griffin.us: the french election is less than a week away, with the two candidates providing stark alternatives to the future of one of europe's biggest economies. at the end of the final days of the campaign, emmanuel macron and marine le pen have been turning up the heat. >> [speaking french] >> mr. macron, i am telling you, the outgoing candidate. since december, french people thought they had gotten rid of francois hollande. that president to failed france. and there he is, back through the window. >> [speaking french] >> i know that many will vote for me on sunday, may 7 to counter the national front. a characteristic of the second round of democracy, and i want to tell them that i respect that, and i am fully aware that on may 7, i am doing more than promoting a political project. i am fighting for the republic and for a free democracy. anna: polls show that macron is with fort runner in support of roughly 60% of voters compared with 40% for le pen. the milken institute global conference

ahead, much more from the milliken conference, including a rare interview with ken griffin.t is coming up next. this is bloomberg. david: this is bloomberg markets. i'm david gura. chatterley.ulia but get back to the milliken institute. erik schatzker is set -- is standing by right now with a special guest. welcomem delighted to ken griffin of sit it out to our set here at the milliken global conference in beverly hills. great to see you. this is where i would like to begin our conversation. your industry is under pressure. hedge funds are closing at the fastest pace since the financial crisis. are inunds that survive many cases retrenching. or returninging in money to investors. how do you see it? ken: i've been in the space for almost 30 years now. it's almost an explosion the size of the industry. the number of funds $3 trillion of capital, it's an unbelievable growth story. dynamics, there's more competition, there's a lot of people in the marketplace and this is causing second-tier players to fall by the wayside. you can see second-tier firms that do not have a competit

david: that was ken griffin.o take us into the story of what glass-steagall would mean in the real world, we are joined by nathan dean from washington. you heard ken griffin saying he is in favor of deregulation. what are people really talking about when they say break up the banks? nathan: they are two things. essentially returning to glass-steagall, separation of the big banks. this other is the idea that the white house is pushing -- you hear about this sometimes in congress -- more like a glass-steagall in disguise, high leverage requirements on investment banks. maybe not a pure separation under the banking sector, but similar to what is going on in the united kingdom. you say you want to push forward glass-steagall, they are also working on dodd-frank deregulation. david: there is that practical constraint. isn't thatthis, close to a we were in the 1990's before the repealed glass-steagall act? a lot of banks are doing the things that are now permitted? -- not permitted. try to implement a ring fencing idea

ken griffin and bill ackman.ith ken griffin who sat down at the milken institute global conference in beverly hills to discuss recent entrenchment in the hedge fund industry. >> i have been in this space for almost 30 years and over that time there has been an explosion in the size of the industry, the number of funds, $3 trillion of capital, it has been an unbelievable growth story. and like many of those, we are going through entrenchment as the dynamics are changing. it is harder to create output, there is more competition and a lot of sharp people trying to get into the marketplace. it is causing some of the second-tier players to fall by the wayside. firmsu see second-tier that do not have a competitive advantage eventually having to call it a day. youruld you describe position as offenses or defensive? >> offensive. >> in what way? >> looking for talented individuals. we hire them and bring them on to our team in this environment with those firms shutting down, it a lot of good people are out there that we

coming up, an exclusive interview with ken griffin at 2:30 p.m. wall street time. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. mark crumpton is here. mark: in washington, republican congressional leaders who want to focus on health care and tax overhaul said giving into democrats on the spending bill. house and senate negotiators agreed on a $1.1 trillion budget measure that would keep the government in operation through september. it rejects most of president trump's priorities, including money to start building a wall along the border with mexico. the united nations human rights chief says his office is quote, watching the united states very closely under president trump. for humansioner rights warned last year that mr. trump's election could be dangerous for the world. speaking today in geneva, he said he noticed a change and some of the rhetoric since the president assumed office and expressed hope that his quote, worrisome campaign trail rhetoric on issues like torture, would, again quoting, dissipate. terrorists -- hooded demons

erik schatzker sat down with citadel founder ken griffin.k started by asking him about the outlook for hedge funds and the future regulation. space foren in this almost 30 years now. over 30 years there has been an explosion in the number of funds that -- $3 trillion of capital. it has had an unbelievable growth story great like many growth stories, we are going through a period of reach ranch meant as the playing field are changing. -- retrenchment is the playing field is changing. you see second-tier firms that don't have a competitor advantage. erik: why is it so hard to generate excess returns? ken: excess returns come from market inefficiencies. work that everyone has done over the last 30 years to come on if news,, -- commodify, data, information means our markets are much more efficient in the short run. erik: is there less output to be had? ken: think about a company matching earnings. today those earnings will be analyzed. people have preemptively decided, companies going to announce this, here's what we are going to do. that litera

among others, ken griffin from citadel, the founder and chief executive officer, ken griffin will bes in the 2:00 hour as well. let me go to the data on a monday. there is a headline, oil simply can't find a bid. , france --macron and le pen campaign today. this is bloomberg. ♪ >> congress that the deal, but that would whose expense? , it coulde tax reform budget, but economic growth could offset that. from new york city, good morning. i'm jonathan ferro, alongside david west. largely close, futures firm, up to 10 sub 1%. up.suries personal income and spending, plus data for the month of march. then, market u.s.

later this afternoon, an exclusive interview with the citadel ceo, ken griffin. his interview at 2:30 new york time, 7:30 p.m. london time. this is bloomberg. ♪ vonnie: lightbank from bloomberg world headquarters in new york, i am vonnie quinn. oliver: i'm oliver renick. this is "bloomberg markets." vonnie: time for the biggest business stories in the news right now. money managers that oversee almost half $1 trillion -- ceo has been fired, and 94 members were ousted. residentr world bank robert zoellick will be chairman. it was time to put new leadership in place. manufacturing in the united states expended less than forecast in april. the issa manufacturing index showed that orders and employment pulled back. that it indicates that manufacturing is settling into a more sustained pace of growth. and expended by the most in a most three years. 21st century fox and blackstone group are teaming up to make an offer for tv station owner tribune media. according to people money with the situation, blackstone would fund the bid and foxwood continued tv stations through

tom: ken griffin said it all. to theto bring this back challenges ken is talking about.y -- with mario, offering lower fees. what is the future of your business after what you observed yesterday? howard: there's no question the asset management industry has a lot of challenges. i think companies have to review their business models. i think there has to be an intense focus on security selection, fees, the value of proposition to the customer. firms have to decide what their specialty is. you cannot be all things. tom: let's see. a huge body of money is most like the s&p, where is your are squared relative -- r squared relative to that? howard: dataset share is a istle -- that asset share about 50. we have about 45% of the assets in the top 15 holdings. the big mass of money that is trying to justify fees? howard: no. the industry got that way is risk aversion -- customers really do not like -- tom: we are going to have to go. howard ward will come back with us. i got ironed up. excuse me for that. coming up, douglas irwin of dartmouth college on free trade. this is bloom

ken griffin and bill ackman. with tim griffin, who sat down with erik schatzker, who discussed recent entrenchment and hedge fund industry. ken: i have been in the space for almost 30 years now, and over the 30 years, it has been an explosion in the size of the industry. the number of funds, $3 trillion of capital, now deployed in hedge funds. it has been an unbelievable growth story, and like many growth stories, we are going through a period of retrenchment as the dynamics of the playing field are changing today. there is more competition. this is causing the second tier players to fall by the wayside. we saw this from the dot com bust. erik: is your position, would you describe it as offense or defensive right now? tim: it is offense. erik: in what way? ken: in the quest for talent. there are a number of really talented individuals we can bring onto our team in this environment. with firms shutting down, there are a lot of good people that we want to bring into the citadel. with firms struggling, there is a go

"bloombergn markets," and exclusive interview with sit it out founder and ceo, ken griffin.h the founder and ceo of sit it out. this is bloomberg. ♪ . . grexit it is 2 p.m. in new york. david: welcome to bloomberg markets. julia: we are live at bloomberg world headquarters in new york. everlyg stories out of hills, washington and london. here are the top stories we are covering on bloomberg and around the world. president trump's with bloomberg, telling us he is actively considering breaking up wall street's biggest banks. then a rare and exclusive the milk, live from and political conference. asking where he would be put his money right now. in the fed's plan for rate hikes coming into question after consumer spending and gdp data.

up later onng bloomberg television, exclusive interview with ken griffin from the milken conference.atch that a 2:30 p.m., wall street time. thinking about the conversation that eirk had with the golden ofceo, they have a history beating estimates and that was not the case this court. looking at the e functionsa earnings assessment and analysis, looking at what is happening on goldman sachs earnings, sorted by the actual amount from all these financial companies. you can see goldman at the bottom of the list here losing by about 20%. there is something to be had there, but this is a blip. vonnie: what i heard is something i've heard from other credit managers, too, that it is a complicated market with a lot of confusion. it was a massive, massive surprise and doesn't happen very often, and towards the end of the interview, he said he expected the 10-year yield to be moving more as well and it is not and it is a complicated matrix. oliver: going with what is happening with a fixed income market, and then you go to yields and they don't match up. let's go to "first word" news with emma

ken griffin, the chicago hedge fund manager bought a daconning for million dollars.tes jobs. how you do you see it play out when art buyers are calling in. >> world is full of entrepreneurs creating immense amount of wealth and enormous amounts of jobs and incredibly amount of capital built up. that is why you see philanthropy and art growing. pictures are not expensive, in relation to the wealth created, they are less expensive. liz: donald trump has yet to pass tax reform and a budget, yet psychologically you seem to be a lift, do you feel that. >> there are definitely animal spirits kicking off since the last election, no doubt about it, but the truth is the administration needs to get promises done if we sustain it. in europe, united states there is a good growth outlook. we feel good about it. liz: good to see you, tad. >> thank you. liz: the wholesale, reaped 320 million for the night. liz: can we show theres. >> $57 million. blue and pink. liz: absolute stunner! >> we thought about it put them on you for the show. liz: why didn't you think about it? >> next ti

i had a chance to sit down with hedge fund legend ken griffin

i had a chance to sit down with hedge fund legend ken griffin, the ceo and founder of citadel.he industry.

warren buffett and ken griffin taking opposing benefits on energy companies.ke is worth $200 million. they plan to increase the hedge funds positioned by 26% to $150 million. their bid tot extend tomorrow's deadlines for a rival. the company confirms that the financial regulator in the netherlands is taking the extension request. the bp bg decide on whether to make a hostile bid. a judge rejected a bid for a shareholder vote. that is your business flash update. scarlet: let's turn out to policy and washington, congress to get a look at the budget proposal earlier this month. the $1 trillion plan plans on using the private sector to improve the facilities of the nation and build a contentious border wall. this morning, vonnie quinn spoke to a ceo and asked him what he makes of the proposal. >> we are still very optimistic that we will see a bill later this year. we have broad bipartisan support for a infrastructure bill. we have broad support at the state and local level. i am quite confident that we will see this bill later this year. forhere is a lot of suppo

and tonight's an important night because we will hope to build upon the challenge grant that ken griffinhip. robin hood funds over 200 community partners in new york city solely for the purpose of fighting poverty, elevating educational standards, elevating living standards, for our neighbors in need. and unfortunately there's $1.8 million in poverty -- >> you guys raise a small fortune every year when you do this dinner. we've been privileged to be at. what did you raise last year? >> i believe it was $61 million raised last year. we also invest a small fortune. so the truth is, is that the beauty of robin hood is that every dollar raised in one year is an investment in the community the next year. and so, unfortunately, it's not like we're building a building where we can then say the building's done, the investment is done, we can all breathe a sigh of relief. because the needs are persistent, therefore our fund-raising needs are persistent. and so we're exceedingly grateful for the generosity of people last year helping us raise $61 million. we, of course, hope to raise a big number