Tuesday, 2 September 2014
Last updated 4 hours ago
Apr 10 2008 | 7:35am ET
A Florida law firm has sued Citigroup for allegedly lying to investors about the risks in one of its hedge funds, and is seeking class-action status.
The suit, filed in federal court in Florida by West Palm Beach law firm Babbitt Johnson Osborne & Le Clainche, accuses Citi Alternative Investments of marketing its Falcon hedge fund strategies as low risk and low volatility to defraud investors through the funds’ “exorbitant fees.” Citi bailed out the Falcon strategies in February with a $500 million line of credit.
In particular, the potential class-action deals with the Falcon Strategies Two B fund, which lost more than 40% of its value. It covers any investors who put money into the fund between Sept. 30, 2005, and Jan. 8 of this year, when Standard & Poor’s changed its volatility rating from its second-lowest risk rating to its second-highest.
According to the suit, Citi moved the fund’s assets into a riskier strategy without informing investors.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...