Ex-Citi hedge fund manager blames firm

John Pickett, who ran a Citigroup hedge fund from 1999 until his resignation in December, has filed a sealed arbitration-like complaint in London. In it, he has some choice accusations against his former employer, notes FINalternatives. Pickett claims Citi's John Havens, who now runs Citi's alternative investment units, overruled him when he attempted to back out of a bid for $730 million in leveraged loans last summer. Pickett's move reflected what he saw at Morgan Stanley and the other banks changed the terms. But after Morgan Stanley complained, Havens ordered Pickett not to sue the banks. A settlement was reached that cost the hedge fund dearly, and helped secure a large loss for the year, according to Pickett (who says the firm put its own interests ahead of customers). Citi says the complaint is without merit. It halted redemptions at the fund in question in February. 

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- here's the FINalternatives article