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Citigroup to Offer New Investment Interests in Registered Fund

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NEW YORK (–Citigroup Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC, a fund of funds that was first registered in 2002, filed with the Securities and Exchange Commission to offer two additional series of securities.

The proposed maximum offering amount used to calculate the registration fee is US$350 million, but $50 million of this is carried over from interests registered about a year ago, according to the filing.

One of two newly registered classes, Series M, is similar to a previous series with a target return of a three-month Treasury Bill plus 6% over a three- to five-year horizon and less than 5.5% standard deviation. But the other type, Series G, targets a somewhat higher return than its formerly offered counterpart, at the U.S. Treasury Bill return plus 8.5% with standard deviation of less than 7.5%

For both portfolios, investment decisions are made via a fundamental, top-down analysis of the risk/return features of hedge fund strategies and a method of grouping managers so as to have stable performance characteristics in each group. Exposure to any one strategy typically is limited to less than 40% of assets and investment in any one underlying fund is restricted to 20% of assets.

The investment adviser, Citigroup Alternative Investments LLC, is a wholly owned subsidiary of the bank. It and its affiliates manage more than US$69 billion in alternative investment assets, the filing states. Hedge funds are part of this total, which also includes private equity, real estate, credit structures and managed futures.

Clifford De Souza and David Biase, who have been part of the investment management team since the initial registration of Multi-Adviser Hedge Fund Portfolios, remain in charge (see ).

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Contact Robert F. Keane with questions or comments at: [email protected].


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