Citigroup is shuttering its $2.4 billion hedge fund Tribeca Global Investments, which will eliminate around 50 jobs, according to The New York Times.Fund executives expect to return $500 million to investors over the next few weeks, a person involved with the situation said.

The move is the first significant one since Vikram Pandit took over its alternative investment group. Citigroup acquired Old Lane Partners in April for more than $800 million in order to bring Pandit and his partners on board, and the move will likely improve performance of Old Lane.

Citigroup executives suggested in a memo that the primary reason for closing the hedge fund was related to strategy.

Citigroup stated it was not closing Tribeca due to losses, but the fund has struggled in recent months. It gained 1.2 % through July, according to Hedge Fund Research, compared to 7.6% that the average hedge fund gained.

“This is not the type of performance you would expect from a hedge fund with that type of resources and size,” said Bradley Alford, former managing director of Duke University’s endowment, who now runs Alpha Capital Management.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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