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Citigroup liquidates its CSO fund
Indiablooms News Service
New York, Nov 19: Citigroup Inc is liquidating its Corporate Special Opportunities hedge fund after it lost 53 percent of its value last month, reported The Financial Times.
The CSO fund managed almost $4.2 billion at its peak and has a net asset value of about $58 million and debt of about $880 million, the report said, citing investors.
Fund investors were not allowed to withdraw their money for about a year as the hedge fund's performance worsened, the report said. Citigroup could lose hundreds of millions of dollars.
The fund stumbled even though Citigroup supplied it with $450 million in credit lines and an equity infusion of about $320 million, according to the report.
Citigroup on Monday announced plans to shed 52,000 jobs by early 2009 to cut costs amid a slowing global economy.
Citigroup representatives were not immediately available for comment.
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