AI market round-up: Citi hedge fund head leaves
Reaz Islam, head of Citi’s Falcon Strategies hedge funds, is leaving the bank.
Falcon Strategies, which traded mortgage bonds, government debt and credit derivatives, has lost 75% of its value, angering investors. Citi is reportedly looking at offering private clients compensation in return for dropping legal claims following the severe losses. The fund was marketed as a "safe" investment. Wachovia also lost money on its $1 billion investment in Falcon.