Orange County Business Journal

Chicago Hedge Fund Ups Stake in QLogic

Chris Casacchia Thursday, March 7, 2013

Chicago-based Citadel Investment Group, headed by billionaire hedge fund manager Ken Griffin, has upped its stake in QLogic Corp.

Citadel now owns 5% of the Aliso Viejo-based networking-equipment maker, according to a filing earlier this week with the Securities & Exchange Commission.

That’s up from a 3.15% stake at the end of the 2012.

Citadel now controls 4.6 million shares of QLogic, which makes electronics such as switches and adapter cards that speed up the flow of data on corporate storage networks.

Investors sent QLogic shares up more than 1.5% in afternoon trading to a market value of $1.05 billion on word of the news.

Citadel, which has an estimated $14 billion under management, according to Crain’s Chicago Business, is one of the world’s largest hedge funds.

The increased stake is the second recent major investment a hedge fund has taken in OC’s networking equipment sector.

Late last year the Business Journal reported New York-based Elliott Management Corp. boosted its stake past 11% in QLogic rival Emulex Corp., becoming the Costa Mesa-based company’s largest investor.

Elliott Management has a history of high-profile sales and acquisitions in the technology sector.