Citi Alternative Investments Posts $358M Loss

Apr 18 2008 | 10:30am ET

Citigroup swung to a huge loss in the first quarter, hurt in part by poor performance and write-downs at its alternative investments business.

The losses at Citi Alternative Investments were a relative drop in the $5.1 billion bucket of red ink: the group recorded “negative revenue” of $358 million “on sharply lower proprietary revenues” and $212 million in mark-to-market losses on SIV assets.

Particularly embarrassing for new CEO Vikram Pandit—whose firm has now taken some $39 billion in write offs—Old Lane Partners, the hedge fund he founded that was acquired by Citi last year, was forced to write off $202 million in intangible assets related to its multi-strategy fund.

“Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions,” Pandit said.

All told, Citi took $16.9 billion in write-downs and loan-related losses in the first quarter, as revenue plummeted 48% to $13.2 billion. The fund’s $5.1 billion loss on the quarter is a mirror image from its first-quarter 2007 performance, when it posted a $5 billion profit.

Citi also said it would cut a further 9,000 jobs, about 3% of its total workforce, on top of 4,200 layoffs announced in January.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR