The FT reports that Citigroup's Corporate Special Opportunities fund has informed believers in the unbridled genius that is Citi Alternative Investments that for every dollar they put in, 3 cents are coming out. And that they should count their blessings it wasn't worse.
According to Citi, "Every fund that invested in bank loans in Europe and used leverage did not survive. At least we are giving investors cash."Without Citi's support, the hedge fund, which invested in corporate debt, would have had negative equity, according to a person with direct knowledge of the matter.
Some debt funds have told investors who want to withdraw their money that they will receive slices of debt in the hedge fund portfolio rather than cash. While such actions are allowed under fund documents, few investors have the capability to deal with such securities.
Investors Hammered By Citi Fund Setback [FT]
Posted by guest , Jan 15, 2009 9:28AM
The good news is that you didn't lose (almost) all of your money as the result of fraud. You keenly did your due diligence and invested in an enterprise that maintains strict controls and employs a proven strategy. Kudo's!
Posted by guest , Jan 15, 2009 9:31AM
That is unbelievable. Even Madoff investors are getting back $0.10 on the dollar.
Investing in Citi is worse than getting snookered in a Ponzi scheme.
Posted by guest , Jan 15, 2009 9:31AM
@1
Get a job.
Posted by guest , Jan 15, 2009 9:36AM
@1
"Kudo's!"?
You are definetly subprime.
Posted by guest , Jan 15, 2009 9:38AM
#1...first of all, I am the official "Trader Apologist" and admire your efforts..... and 2....
Traders don't lose money; leveraged bank loans in Europe do.
Posted by BottomFellOut , Jan 15, 2009 9:39AM
When do people stop trading with Citi?
Posted by guest , Jan 15, 2009 9:53AM
This shouldn't shock anyone that's been watching the credit markets for the past year. Many funds are gone and more than a couple savvy debt players were being beaten on the ropes and close to going down. Generally, when unleveraged returns get attractive on an asset class that was commonly leveraged at 5:1, it means lots of people went to zero.
Posted by guest , Jan 15, 2009 9:55AM
@2
Correction - Tontine's LP are getting back $.10, Made-off's Eurotrash clients will have to divvy up $200 pairs of mittens and some of the Mrs.’ baubles.
Posted by guest , Jan 15, 2009 10:12AM
Further proof that Vikram Pandit is a no-talent clown who should be fired ASAP.
Posted by guest , Jan 15, 2009 10:27AM
When does the Prince/Bitch triple down?