Citadel to Close Fusion FOF

Lots of rumors have been flying around Citadel, nearly every one has been bogus.

Last week, before the shit hit the fan, I heard they might be closing their seeder programs. They had just spent the summer months interviewing teams to join the NYC office, and rumor had it they were pulling the plug on some of them after only two or three months. But that does not appear to be true:

``We have seen strong interest in the incubation and seeding strategies that we've developed,'' Katie Spring, a Citadel spokeswoman, said in the statement. ``We believe these will be important components of expanding investment talent over the years to come.

Citadel hired a guy out of Goldman to take on IR duties roughly a year ago....but he makes Katie do the heavy lifting, apparently. But the following is accrurate:

Citadel Alternative Asset Management is closing Fusion, its $1 billion hedge fund of funds, said a source with knowledge of the firm.

About 95% of the assets are internal, and that money will be moved to two CAAM seeding and incubation funds, Discovery and Pioneer. The 5% from external investors will be returned.

Discovery and Pioneer have $1 billion total. The hedge funds invest in new and early-stage hedge funds.

Jon Venetos, managing director, will remain head of CAAM, the source said. CAAM was started about 18 months ago by parent Citadel Investment Group. Pension & Investments

I have yet to see any rumors on Citadel that were close to the mark, maybe everyone can give it a rest?

Citadel reallocates capital from fund of funds
Pension and Investments

Update:
Citadel to Wind Down $1 Billion Fund of Funds, Shift Capital
Bloomberg
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