Citi Shuts Yet Another Hedge Fund |
Date: Thursday, November 20, 2008
Author: Hedge Fund.net
Citi doesn't seem long for the hedge fund business as the bank reportedly closes yet another fund.
Citi is liquidating a corporate special situations fund that was down 53% in October, the Financial Times reported. The fund closure is another bit of bad news in a week when the bank said it would lay off more than 50,000 employees.
The fund, which had about $4.2 billion at its peak, now has assets under management of about $58 million and debt of about $880 million, the Financial Times said.
Citi did not return an e-mail from HedgeFund.net seeking comment on the fund liquidation.
The bank's track record in the hedge fund world has not been a good one. A fund headed up by Reaz Islam, was closed in March and he left the bank.
In June Citi also shuttered Old Lane, the hedge fund founded by Citi's now-Chief Executive Officer Vikram Pandit. The Old Lane failure happened a little over a year after Citi bought the firm for $800 million.
Tribeca, another hedge fund that Citi thought would make it a force in the asset class finally closed its last $400 million convertible arbitrage hedge fund in August.
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