Hedge Funds

Softening its stance, Citadel moves to pay out redemptions


Citadel Investment Group, which manages $12 billion, will begin paying out a portion of the estimated $1.2 billion in withdrawal requests that it has received.

The firm’s flagship multistrategy portfolio lost about 55% last year and halted redemption payouts in December to avoid further losses through a forced sale of assets. A number of the industry’s biggest funds suspended redemptions last year , including Tudor Investment and Farallon Capital Management.

In a letter to investors, Citadel said it would meet redemption requests for its Wellington and Kensington funds over time, distributing cash as the firm’s improving capital position warrants.

“As our