Two Citigroup units have formed a joint venture with a hedge fund firm to provide custom hedge fund-of-funds portfolio management services for high net worth investors.[@@]

Citigroup Global Wealth Management- Smith Barney and the Citigroup Private Bank==will join Pacific Alternative Asset Management Company in the entity, to be known as Global Hedge Strategies, LLC.

“There is an ever-growing demand among our high net worth clients for sophisticated alternative investments,” said Todd Thomson, CEO of Citigroup Global Wealth Management. “Increasingly our clients are moving beyond basic funds to hedge funds to hedge funds portfolios tailored to their specific needs.”

Citigroup Global Wealth Management has more than 560 private bankers and 12,000 financial consultants overseeing more than $1.2 trillion in assets under management.

Pacific Alternative Management Company has over $7 billion under management and a current client mix of large public and private pension plans, foundations, endowments and financial institutions.