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Citigroup Inc. Message Board

  • srbbs srbbs May 12, 2011 10:53 AM Flag

    Pandit: How much have you made on Citigroup?


    Be honest....

    The fund was launched in 2006 with much fanfare after Mr. Pandit was one of those who left Morgan Stanley amid the departure of chief executive Phil Purcell. It was capitalized with about $4 billion in initial investments and later purchased by Citigroup Inc. in what proved to be the high-water mark for the fund, as it turns out. Here’s a brief timeline of the major events in the life of this fund:

    2005: Mr. Pandit leaves Morgan Stanley to start his fund.
    April 2006: The fund is first started with about $2 billion in assets, which later balloons to $5 billion. The fund generates a 6.5% return in its first 12 months.

    April 13, 2007: Citigroup agrees to buy the fund for a cool $800 million, naming Mr. Pandit head of the firm’s alternative-investments group.((((( Mr. Pandit gets $165 million for the purchase, which closes in July, just before the credit crunch erupts.))))))
    August 2007: The fund falls 5.9% in one month amid the credit crunch, putting it down 1.9% for the year, lagging behind the average hedge fund, up 6.2% on the year. Some later say Mr. Pandit, distracted with other duties at Citigroup, has been unable to oversee the fund.
    October 2007: Mr. Pandit is named head of Citigroup’s investment bank.
    November 2007: The fund is reportedly up 3% on the year, lagging the average hedge fund’s 10% gain.
    December 2007: Mr. Pandit is named new CEO of Citigroup.
    April 2008: Citi marks down the value of Old Lane by more than $200 million, shortly before posting a $5 billion loss.
    May 2008: Citigroup lets investors in Old Lane withdraw funds early – and not just a few, but just about all investors not affiliated with the fund in one way or another. That’s $3 billion or so in assets.
    June 2008: Citigroup announces plans to close Old Lane, 26 months after its inception, and 11 months after Citigroup purchased it. The bank will likely take a charge as a result.

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