Saturday, February 16, 2008

Halts Withdrawals? You mean MY Money??!!

Citigroup halts withdrawals from hedge fund: report
By Simon Kennedy
Last update: 5:36 a.m. EST Feb. 15, 2008
LONDON (MarketWatch) -- Citigroup Inc. (C
C) has halted withdrawals from one of its hedge funds after investors holding around 30% of the $500 million fund asked for their money back, according to a report in The Wall Street Journal. Citigroup injected around $100 million into CSO Partners, a fund that specializes in corporate debt, last month in an effort to stabilize it after it lost 11% in 2007, the newspaper said. Investors have been asking to withdraw their money after complaining that the fund's longtime manager John Pickett put too much money into a single investment that went bad. Pickett recently left the fund after a dispute with Citigroup executives and the investor complaints, the report added.

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