Hedge Funds

Citadel to return $250m to investors

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First distribution of redemptions since investors asked for their money back last year.

Citadel Investment Group plans to return $250 million by October 1 to investors in its flagship funds, Citadel Kensington Global Strategies Fund and Citadel Wellington, according to a letter sent August 4. It is the first distribution of redemptions since investors asked for their money back last year.

The flagship multistrategy portfolio lost about 55% last year. Faced with requests to withdraw 12% of assets ($1.2 billion) by year-end 2008, Citadel in December halted redemption payouts to avoid further losses through a forced sale of assets.

In a February letter to investors, Citadel said it would meet redemption