West Palm Beach (HedgeCo.Net) – Only one month after Citigroup halted investor redemptions on their CSO hedge fund, they are jolting their Falcon Strategies funds with $500 million. As a result, the $10 billion in assets that the funds oversee will be consolidated and moved onto Citigroup’s balance sheets. <\/p>\n
The pressure is now on CEO Vikram Pandit, who is trying to recover from a record $9.83 billion loss in the fourth quarter. His flagship hedge fund, Old Lane Partners, also suffered setbacks in January, dropping 1.8%.<\/p>\n
The Falcon Strategies Funds includes five separate hedge funds. In addition to direct investments, each fund invests in second-tier limited liability investment vehicles. Their strategies include utilizing primarily high-grade municipal securities, corporate and financial securities, structured credit, ABS and residential and commercial MBS. The funds declined in value 30% last year alone.<\/p>\n
Falcon Plus Strategy, the newest fund in Citigroup’s alternative investments unit that was launched last fall with assets of around $20 million, lost 52% its first quarter. <\/p>\n
Spokemen for Citigroup blamed Falcon Plus’ performance on shaky, fixed income markets. The hedge fund bet on mortgage-backed and preferred securities, as well made trades involving the relative values of municipal bonds and U.S. Treasuries.<\/p>\n
This is the second time this year that Citigroup has come to the rescue of their internal funds. After they froze redemptions on CSO, they injected the fund with $100 million, in an effort to prevent liquidation. <\/p>\n
<\/p>\n
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net]<\/p>\n
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! West Palm Beach (HedgeCo.Net) – Only one month after Citigroup halted investor redemptions on their CSO hedge fund, they are jolting their Falcon Strategies funds with $500 million. As a result, the $10 billion in assets that the funds oversee […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7190","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/7190","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=7190"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/7190\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=7190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=7190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=7190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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