Citigroup suspends redemptions in credit fund

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Citigroup has temporarily suspended redemptions in its Corporate Special Opportunities (CSO) fund, which follows a credit and event-driven strategy, as investors attempted to pull 30% of the $500 million fund’s assets following an 11% loss in 2007.

"We have temporarily suspended redemptions of all shares of CSO to stabilize the fund and allow time to address its funding needs to meet anticipated obligations,” said Jon Diat, a Citigroup spokesman. “All [Citigroup Alternative Investments] funds are subject to comprehensive internal fiduciary risk oversight, risk management practices and senior level management supervision."

Citigroup invested $100 million of its own capital into