Citadel Sheds Senior Credit Manager Amid Losses on Spirit Aviation Bet

Mar 27, 2026 19:22 UTC

SPRT, CL=F, ^VIX

Short term

Citadel has dismissed credit portfolio manager Zachariah Barratt following significant losses, including a failed trade in Spirit Aviation Holdings Inc. The move highlights growing risks in leveraged credit markets and may signal broader market repricing.

Zachariah Barratt, Citadel’s credit portfolio manager, has departed the firm
Losses were linked to a trade in Spirit Aviation Holdings Inc. (SPRT)
The departure follows a series of adverse outcomes in Citadel’s credit portfolio
Market indicators like CL=F and ^VIX reflect ongoing volatility
The event may trigger repricing in credit markets and affect leveraged positions
No specific financial figures were disclosed in the report

Citadel, one of the world’s largest multistrategy hedge funds, has parted ways with senior credit portfolio manager Zachariah Barratt after a series of losses, according to a person familiar with the situation. The departure follows a notable downturn in the fund’s credit portfolio, particularly stemming from a high-profile trade involving Spirit Aviation Holdings Inc. (SPRT). While the exact size of the loss is not disclosed, the exit underscores increasing volatility in credit-sensitive asset classes and raises questions about risk management within large hedge funds. The move comes amid broader market unease, with the CBOE Volatility Index (VIX) and crude oil futures (CL=F) reflecting heightened uncertainty in financial markets. As Citadel reevaluates its credit strategy, the event could influence investor sentiment toward leveraged positions and affect pricing across the credit spectrum.