{"id":15986,"date":"2010-06-02T07:05:44","date_gmt":"2010-06-02T11:05:44","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=15986"},"modified":"2010-06-02T07:11:58","modified_gmt":"2010-06-02T11:11:58","slug":"citigroup-hedge-fund-investors-awarded-100-return-on-losses","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2010\/citigroup-hedge-fund-investors-awarded-100-return-on-losses.html","title":{"rendered":"Citigroup Hedge Fund Investors Awarded 100% Return on Losses"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/06\/citigroup6301.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-15990\" title=\"citigroup hedge fund\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/06\/citigroup6301-300x252.jpg\" alt=\"\" width=\"214\" height=\"180\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2010\/06\/citigroup6301-300x252.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2010\/06\/citigroup6301.jpg 473w\" sizes=\"auto, (max-width: 214px) 100vw, 214px\" \/><\/a>New York (HedgeCo.net) &#8211; Investors in Citigroup&#8217;s fixed-income municipal arbitrage hedge fund have been awarded over $550,000 by the Financial Industry Regulatory Authority (FINRA).<\/p>\n<p>The Wall Street Journal reports that the MAT 3 Municipal Arbitrage Fund was &#8220;a risky investment that not only exposed investors to a 100% or more loss of principal, but was 2.5 times more volatile than the S&amp;P 500 and 7.8 times more volatile than a traditional portfolio of municipal bonds,&#8221; according to lawyers.<\/p>\n<p>FINRA said that the bank understated the hedge fund&#8217;s risk to investors and awarded a 100% return on the investors&#8217; losses.<\/p>\n<p>&#8220;We are disappointed and disagree with this decision as it is inconsistent with other panels, which have dismissed similar claims.&#8221; Citigroup Spokesman Alex Samuelson said in an interview with WSJ. Citigroup also said the hedge funds were\u00a0offered only to clients who knew about and could afford the risks.<\/p>\n<p>Alex Akesson <br \/>Editor for <a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a> is a premier <a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a> and community for qualified and accredited investors only. Membership in <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) &#8211; Investors in Citigroup&#8217;s fixed-income municipal arbitrage hedge fund have been awarded over $550,000 by the Financial Industry Regulatory Authority (FINRA). The Wall Street Journal reports that the MAT 3 Municipal Arbitrage Fund was &#8220;a risky investment [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16005,3],"tags":[],"class_list":["post-15986","post","type-post","status-publish","format-standard","hentry","category-developing-stories","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/15986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=15986"}],"version-history":[{"count":4,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/15986\/revisions"}],"predecessor-version":[{"id":15992,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/15986\/revisions\/15992"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=15986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=15986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=15986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}