Another day, another round of rumors about Citadel. Today's rumor says that Citadel's flagship funds are off forty-percent, losses piling on top of the 35% decline disclosed last week. We haven't even bothered to try to confirm this but pretty much everyone is saying it.

CNBC's David Faber adds one we hadn't heard. In order to raise money, Citadel is said to be approaching fund of funds and other hedge fund investors with an offer. The gist of it is that if they pull their money out of another hedge fund and give it to Citadel, they'll get the high water mark that applied at their old fund. It's a risky bet for Citadel, and one that is sure to piss off rival fund managers. It also seems to indicate that Citadel is convinced that no new money is going to come into hedge funds. At this point it's all about fighting for dollars that are already in alternative investments.