Citadel looks to mortgage securities for new business (Dealscape

Undeterred by poor performance and a wave of redemptions in the past year, hedge fund Citadel Investment Group LLC now hopes to wade into mortgage-related securities, said sources familiar with the situation.

Plans are in the early stages, and the firm has yet to determine the timing of the hedge fund's launch or its target size, a source said. Another source said Citadel is looking to build a portfolio of undervalued loans, though it is unclear whether these will include subprime loans. Investments in subprime loans could open the door for Citadel to participate in the government's Public Private Investment Program, but sources said it is too early to say. The new fund will likely have relatively illiquid holdings.

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NOT A SUBSCRIBER? Citadel looks to mortgage securities for new business Posted on April 30, 2009 10:01 AM Undeterred by poor performance and a wave of redemptions in the past year, hedge fund Citadel Investment Group LLC now hopes to wade into mortgage-related securities, said sources familiar with the situation. Plans are in the early stages, and the firm has yet to determine the timing of the hedge fund's launch or its target size, a source said. Another source said Citadel is looking to build a portfolio of undervalued loans, though it is unclear whether these will include subprime loans. Investments in subprime loans could open the door for Citadel to participate in the government's Public Private Investment Program, but sources said it is too early to say. The new fund will likely have relatively illiquid holdings. This is a free preview of the content available in The Deal Pipeline. Subscribers enjoy access to the full story, as well as second-to-none research tools. To request a demo, or, if you are an existing user to The Deal Pipeline, log in to your account, please scroll down and click the button. Dig deeper, with Pipeline. 1,213 in-depth reports of PE deals in the Financial Services sector 329 in-depth reports of Bankruptcies in the Financial Services sector 214 company pages related to mortgages 68 articles related to Citadel Investment Group LLC 10 years of news and analysis archives from the voice of The Deal Economy Most searched keywords Deutsche Bank Birds Eye Cadbury AG Agrium Inc. Skadden Arps Revolution Money Tandberg ASA Aisling Capital Ken Lewis Natco		EXISTING USERS Username Password Forget your password? Missing a product?

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