Citigroup Private Bank Extends Hedge Fund Platform to Asia

Stephen Harris

6 October 2005

Citigroup Private Bank has launched a platform for wealth management and private banking clients in Asia to invest in single-strategy hedge funds. HedgeForum gives investors a small selection of single-strategy hedge funds, which have the Citigroup Alternative Investments seal of approval having passed its due diligence requirements. To date, 12 hedge funds have been added to the platform, four more will be included within the month. Citigroup are planning for the platform to offer around 20 to 30 hedge funds eventually. The minimum entry level for participation in HedgeForum has been set at $250,000 excluding fees. The platform, which was launched in May, but is only now offered to Asian clients, presently has a total investment capacity of $2.1 billion. "A lot of clients don't have the resources to do due diligence. This allows our clients to pick and choose," said Neil Brown, New York-based managing director and global head of sales at Citigroup Alternative Investments. Hedge fund due diligence has recently come under the spotlight as it begins to emerge that basic checks made by institutional investors into the fraudulent failed Bayou funds revealed glaring errors and omissions. These failings went unnoticed by smaller investors who ended up the losers.