Old Lane, Fortress Down, Citadel Up

Sep 13 2007 | 7:38am ET

August was an ugly time for hedge funds, sparing not even the biggest and most well-known. In fact, it seems as though the household names of the hedge fund world bore the brunt of its fury.

The latest casualties are Old Lane and Fortress Investment Group. Old Lane, recently enshrined as Citigroup’s flagship hedge fund following the announced closure of Tribeca Global Investments, repaid the favor with a 5.9% decline in August, according to Bloomberg News. The $4.4 billion fund, which Citi snapped up two months ago, naming founder Vikram Pandit head of Citi Alternative Investments, remains up year-to-date, at 1.9%.

Meanwhile, Financial News reports the Fortress’ global macro fund, Drawbridge, lost 4.7% in August, though the $6 billion fund remains up 3.17% through August.

By contrast, Citadel Investment Group is profiting from the pain. The Chicago hedge fund giant is up 15% through August, Bloomberg reports. Kenneth Griffin’s fund has made a cottage industry of snapping up assets from hedge funds on the way out. Last year, Citadel bought Amaranth Advisors’ portfolio, and earlier this year, the firm grabbed Sowood Capital Management’s holdings at a bargain-basement price. More recently, it agreed to buy $500 million in assets from troubled money manager Sentinel Management Group, though Sentinel clients are threatening lawsuits to stop the deal.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of