Citigroup Bails Out Troubled Falcon Hedge Funds

Feb 25 2008 | 1:00am ET

Citigroup has extended a half-billion dollar lifeline a group of its hedge funds rocked by the credit crunch.

The Wall Street giant said late Friday that it has provided a $500 million line of credit to its Falcon Strategies hedge funds. The bank has also consolidated the funds’ $10 billion in assets and liabilities on its own balance sheet.

The Feb. 20 decision comes after the funds lost approximately 30% last year. A new, levered version of the Falcon funds plummeted by more than 50% in its first three months of trading.

The hedge fund bailout is the second for Citi in as many months: The bank propped up its CSO Partners fund last month with $100 million, after suspending withdrawals.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...