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
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