Citigroup to close Pandit founded hedge fund

Times Online- Citigroup is to close an $800 million hedge fund co-founded by its chief executive Vikram Pandit, following bad returns and the loss of top managers.

The US investment bank will now buy what is left of Old Lane Partners’ assets and be forced to further write down the value of the fund in the second quarter, The Wall Street Journal reports. In the first quarter Citigroup wrote down the value of the fund by $202 million to reflect investor redemptions.

Old Lane’s closure is the latest blow for Citigroup, which has struggled with sub-prime mortgage related losses, losing nearly $15 billion in the last two quarters, forcing it to cut jobs and sell businesses.

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