Pandit's hedge fund not faring well

The news that Citigroup will essentially wind down Old Lane, the hedge fund firm that Citigroup bought for $800 million, may stand as an omen. The fund--which was started by Vikram Pandit, who now heads the bank--has been a turkey for investors. Forbes notes that the fund fell 4 percent. In 2007, it was up only 2.8 percent, net of fees. Citigroup now is allowing investors to exit the fund. Most will take them up on the offer. But employees must stay invested until 2011. The article calls the fund an "odd stew" of investments. Its ultimate downfall seems to be the result of the credit crunch. Its big bet on collateralized debt obligations did not fare well. Certainly, Old Lane added to the hedge fund woes at Citigroup. You can't help but think that these grapes will sour even more if Pandit cannot turn the company around.  

For more:
- here's the Forbes article

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