Corporate & Securities Law

SNSFE is investigating the London-based fund CSO Partners after Citigroup has suspended investor withdrawals from it.  This $500 million credit hedge fund has lost 10 percent since November and the manager has resigned. 

Investor redemptions have been suspended so that the fund can "stabilize" according to a Citigroup spokesman.  In addition to suspending investor exits, Citigroup told investors that it had put up $100 million into the fund in recent weeks and is looking for other funding sources.

According to one expert, Ferenc Sanderson, senior hedge fund analyst for Lipper, "If they are invested in illiquid assets, chances are they cannot get out an equivalent amount of money investors are demanding without materially damaging the portfolio." 

Sanderson said the fact that it is happening in a fund managed by one of the world's largest banks means that "even having a big name and a big brand doesn't leave investors immune to potential issues when they try to redeem."

Investors with information about CSO Partners are urged to contact attorneys at SNSFE.