Former Citigroup proprietary trader Ramakrishna Putcha has moved into the bank's hedge fund unit, rather than follow his colleagues out of the firm.
Putcha, a close associate of Citi CEO Vikram Pandit who worked with Pandit both at Morgan Stanley and at Pandit's hedge fund, Old Lane Partners, had been a member of Citi's Principal Strategies prop. desk. That team's former chief, Sutesh Sharma, plans to launch his Portman Square Capital in the fall with $500 million—and much of the Principal Strategies team.
But not with Putcha, who instead was named a co-manager of Citi Capital Advisors' Strategic Credit Fund. That fund has about $200 million, most of it Citi's own, although the same Volcker rule that is driving prop. traders from its ranks will also force the bank to raise outside capital and withdraw some of its money from the fund. Citi will also allow CCA's traders to acquire a stake in the business.
Strategic Credit invests in lower-rated collateralized loan obligations and bonds.