Wednesday, 1 October 2014
Last updated 11 hours ago
Aug 24 2012 | 1:12pm ET
Citigroup's patience with Paulson & Co. is at its end.
The firm's private bank will redeem about $410 million from Paulson's flagship hedge funds, which posted double-digit losses last year and are on pace to do the same again this year, and two other hedge funds The Citi withdrawal amounts to more than 2% of the New York-based hedge fund's $19.5 billion in assets.
Citi's decision comes three months after it put Paulson on its watch list, making it ineligible to get any new money from the private bank for three months and warning clients not to add any new money. Paulson has long enjoyed a steady stream of new capital from bank hedge-fund platforms.
Morgan Stanley also put Paulson on watch at the time; it is unclear whether it plans to dump the hedge fund, as well.
Paulson's Advantage and Advantage Plus funds were available on the Citi platform. The latter, a more highly-levered version of the former, lost 51% last year and is down 18% this year. The firm's Merger and Recovery funds were also on the platform.
Citi's redemptions will begin between March of next year and March 2014.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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