BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Market Movers >  

Vikram Pandits Amazing Disappearing Hedge Fund

Market Movers

by Felix Salmon
Main
Extra Credit, Sunday Edition   Can Cities Transcend National Politics?

Recent Blog Posts

Links

May 04 2008 12:00am EDT

Vikram Pandit's Amazing Disappearing Hedge Fund

Eric Dash reports that investors in Vikram Pandit's Old Lane funds redeemed "substantially all" of their funds when they were given the opportunity in late March. Old Lane, which had $4.5 billion in funds under management last year, is now down to just $1.5 billion - and that money belongs to Citigroup, Pandit, and other Old Lane principals.

And yet the $800 million that Citi paid for the firm has been written down by just 25%, which doesn't sound very realistic to me. Old Lane was a duff investment, and Pandit should be extremely embarrassed by its performance. Any other executive who presided over such an atrociously-performing business line would have been fired; Pandit, astonishingly, got promoted to CEO of the whole shebang. I don't doubt that he might do better at Citigroup than he did at Old Lane - after all, he can hardly do much worse. But his public statements on the subject of Old Lane, when he's finally forced to make them, are going to be extremely interesting.

blog comments powered by Disqus
Real Business, Real Results
Out of the 'Family'

Did anyone at Microsoft ever watch the (gasp!) offensively funny show Family Guy?

Cruz Missile Lands

Ex-Morgan Stanley exec Zoe Cruz is now heading her own hedge fund. Are Wall Street's leaders done?

Scandal Chic

Martha, Bernie and Skilling know that what you wear for court can go a long way in public perception.

spotlight on

Health Care

Bad to the Bone No More

Companies such as General Mills say they're stepping up efforts to change employees' bad behavior and promote healthier lifestyles. Read More