Yet another Citi hedge fund stumbles

November 19, 2008 | By Jim Kim

Recall that one big issue that led to the estrangement between Citi CEO Vikram Pandit and former head of wealth management Sallie Krawcheck was how to deal with "victims" of Citi's hedge funds. Should they be made whole? It's now clear that such a move could have really been expensive. The latest: Citi's Corporate Special Opportunities sank 53 percent last month and will be shuttered, reports the Financial Times. That marks the ninth fund that Citi has been forced to close or rescue recently. The fund managed almost $4.2 billion at one time. But it apparently invested in lots of European deals, and now has a net asset value of about $58 million against debts of $880 million. The FT says investors will likely receive "no more than 10 cents on the dollar." For Pandit, the hits keep coming.

For more:
- here's the FT article on the CSO fund