News, analysis and personal reflections on the markets & the financial sector

Thursday, January 8, 2009

Citadel's flagship fund lost half its value

Citadel Investment Group LLC’s flagship fund lost roughly half its value last year, a beating that echoed throughout the hedge fund industry.

The loss is a preliminary tally given to Reuters from an investor who asked not to be identified. The fund generated returns of around 30% in 2007, according to Reuters.

Citadel, a Chicago-based hedge-fund, in December halted redemptions on its two largest funds as part of an effort to boost its cash reserves.

Hedge funds suffered their worst year in 2008, losing an average 19.2% that was still less steep than the 38% drop for the average stock mutual fund, data released on Thursday showed.

more at

http://www.chicagobusiness.com/cgi-bin/news.pl?id=32536

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