BOSTON (Reuters) - Citadel Investment Group said Thursday it plans to shut down a $1 billion (617 million pound) portfolio that invests in other hedge funds and put the capital it invested in the fund into other businesses.
Citadel, the Chicago-based hedge fund firm that manages roughly $18 billion, launched its fund of funds portfolio called Fusion about 18 months ago and put up nearly all of the starting capital.
Now Citadel will take its 95 percent stake in the $1 billion portfolio out and redeploy it to other businesses, a spokeswoman for the hedge fund said. The remaining 5 percent in capital will be returned to outside investors who put money into Fusion, she added.
Fusion was one of three businesses run within Citadel Alternative Asset Management. The others are Pioneer and Discovery, which both focus on new and emerging fund managers. Together they manage $1 billion.
Reporting by Svea Herbst-Bayliss, editing by Gerald E. McCormick