Citadel Scales Back Asia Operations

[mentalslavery]

Source: Wall Street Journal

HONG KONG -- Citadel Investment Group became the latest major hedge fund to pull back from Asia, as a sharp market slump diminishes the appeal of a region once seen as a promising source of growth.

Chicago-based Citadel said it was closing its Tokyo office, laying off 12 employees there. It will also cut 25 jobs in its Hong Kong office, representing nearly half of its employees there.

Citadel also said it will deal more in foreign exchange, derivatives and possibly other transactions. Previously, it had pursued an investment strategy that resembled that of many private-equity firms, in which it ...

Read more: http://online.wsj.com/article/SB122872259139987729.html

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In and of itself this news is to be expected. However its not just one massive global hedge fund that is suffering and about to reap what it has sowed. In 6 months, it might be half of all hedge funds which is about a trillion in loses. The scope of this is mind-blowing. This definitely could be worst than the 30's and come on quicker, the sector loses are too rapid and far reaching.

"By the end of last week, about 100 hedge funds imposed restrictions on withdrawals. Many funds have become financial roach motels: Investors can put their money in, but they can’t get it out. "


http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_hassett&sid=anXt996yzU6o


http://www.finalternatives.com/node/6284

http://www.finalternatives.com/node/6261

http://www.finalternatives.com/node/6281

http://www.reuters.com/article/marketsNews/idUSN0544065420081206

http://www.reuters.com/article/GCA-CreditCrisis/idUSTRE4B71HI20081208