Saturday, 23 August 2014
Last updated 16 hours ago
May 18 2011 | 11:57am ET
Citigroup can't win for losing. It apparently can't win for winning, either.
The banking giant said a mortgage hedge fund that almost exclusively manages its own capital is up 16% this year. The only problem is that, under the Volcker rule, it's either got to raise a lot more money for the $395 million vehicle, get rid of it or pull its own currently very profitable capital.
The bank may seek to do the former, Bloomberg News reports, prior to the implentation of the Volcker rule, which is likely several years off.
The Mortgage/Credit Opportunity Fund was launched in 2008 by former Halcyon Asset Management principal Rajesh Kumar. Citi seeded the fund, which invests in both commercial and residential mortgage bonds, with $200 million.
The fund returned 17% in the last eight months of 2008, 23% in 2009 and 26% last year.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note