Citigroup liquidates its CSO fund: report
NEW YORK (Reuters) - Citigroup Inc (C.N) is liquidating its Corporate Special Opportunities hedge fund after it lost 53 percent of its value last month, the Financial Times reported on its website on Tuesday.
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 FT reported, citing people familiar with the matter.
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.
(Reporting by Aarthi Sivaraman; Editing by Clarence Fernandez)