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Citi to restart beleaguered hedge fund ops

Nov 06, 2009 (M2 EQUITYBITES via COMTEX) --

Company: Citigroup, Inc. (C)

6 November 2009 - US bank Citigroup (NYSE:C) is ready to give a fresh start to its struggling hedge fund unit as it strives to put behind its troubled past, the Financial Times reported today citing people in the know.

Citi Alternative Investments, or CAI, which saw spiraling losses and hedge fund closures last year on top of internal conflicts and mounting investor fears, may be re-launched as Citi Capital Advisors after calls to leave behind the Citi name were rejected.

But the fate of the troubled unit is particularly delicate as its top-tier management of former Morgan Stanley (NYSE:MS)veterans is closely linked with Citi's.

Moreover, the separation is a remote option, given that nearly 50% of USD2.7bn (EUR1.8bn) in the internal hedge funds comes from Citi. 

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Company: Citigroup, Inc. (C)


Related terms: alternative investment, hedge fund, nyse, veterans

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