Citadel to meet all '08 fund redemptions this year

NEW YORK, Sept 16 (Reuters) - Citadel Investment Group's flagship hedge funds, which suspended withdrawals late last year as markets plunged, expects to meet all $1 billion of 2008 redemption requests this year as the funds bounced back, sources familiar with the situation said.

Citadel's Kensington/Wellington funds, down 58 percent last year as investment in convertible bonds plunged in value, were up 52 percent through Sept 1, the sources told Reuters. (Reporting by Joseph A. Giannone, editing by Leslie Gevirtz)