28/04/2010 Author: Elana Margulies

Citibank redeems from FiveT Capital hedge fund

Citibank has redeemed money from FiveT Capital's hedge fund following a run of poor performance.  

According to a source close to FiveT Capital, Citibank, one of the fund’s early investors, pulled out its allocation from the Switzerland-based equity long/short manager earlier this year.

BarclayHedge data revealed that the euro share class of FiveT Capital's FiveMore Fund is down 11.28% YTD through February, following its return of -9.06% last year. However, during the global financial crisis in 2008, when most other long/short managers underperformed, the FiveMore Fund was up for the year, returning 7.93%.

According to a source familiar with FiveT Capital, when the fund lost more than 50% of its assets in February, it paid out every single investor on time and reduced its gross exposure to 0.04% in this period.

Viktor Paul Pospiech, director of sales and marketing at FiveT, confirmed that Citibank had redeemed capital from the fund, adding that it was company policy not to discuss past, current or future investors without their permission.