Citigroup to merge hedge fund services into single unit

19 March 2007

US banking giant Citigroup is planning to revamp and streamline its hedge fund services, according to recent reports.

Under Steve Bowman, who previously worked for the bank in fixed-income sales, the new Hedge Fund Services operation will offer equity income, currency trading and equity in a single unit.

News of the proposals came from a leaked internal memo obtained by Reuters which outlined plans for "multi-broker, multi-strategy capabilities under one business…to anticipate and address the increasing complex needs of hedge fund clients anywhere in the world."

Mr Bowman will report to Neeraj Sahai and Jamie Forese, who currently head up the company's securities and equities operations respectively.

News of the bank's intentions signals its plan to compete more effectively with Morgan Stanley, Bear Stearns and Goldman Sachs in the prime brokerage services sector.

Earlier this month, Citigroup opened a hedge-fund services focussed office in Singapore to take advantage of an Asian market in which hedge fund assets under management grew by $140 billion in 2006.

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