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Thursday, 8 December 2016
Last updated 57 min ago
Nov 23 2009 | 12:25pm ET
Citigroup has redeemed its seed investment with a credit hedge fund founded by three former traders at the firm as part of a larger move away from outside hedge fund investments.
The Wall Street giant withdrew its entire investment with Claren Road Asset Management, about $250 million, The Wall Street Journal reports. According to the newspaper, Citi’s exit from Claren Road is part of a broader decision to pull its money from external hedge funds.
Citi invested with Claren Road at its founding in 2005 by three former credit traders, John Eckerson, Sean Fahey and Brian Riano. The fund has actually performed quite well despite the credit crisis, returning about 10% last year and more than 20% this year.