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17 Feb 08
Citigroup had moved to stop investors withdrawing their money from one of its London-based hedge funds after panic selling which saw investors try to pull out more than 30% of the fund’s $500m (£254.3m) assets, The Times reports.
The bank has suspended redemptions in CSO Partners, a fund run from a Berkeley Square address which specialised in corporate debt and which lost 11% last year, according to The Wall Street Journal.
Citigroup last month injected $100m into the fund to stabilise it. The funds long term manager, John Pickett, has also departed after a dispute with Citigroup executives and complaints from investors that he put too much money into a single investment that went bad.
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Citigroup halts hedge fund withdrawals
17 Feb 08
Citigroup has barred investors in one of its hedge funds from withdrawing their money.
The largest bank in the U.S has temporarily stopped redemptions in CSO Partners, a fund specialising in corporate debt.
Citigroup injected US$100 million to stabilise the fund after investors tried to pull more than 30 per cent of its roughly US$500 million of assets.
Some investors had tried to back out of the fund after Citigroup managers committed more than half the fund’s assets to buy leveraged loans tied to a German media company.