Citigroup unit abandoning Paulson

John Paulson
John Paulson

Citigroup Inc.'s private bank is pulling about $500 million from Paulson & Co., the hedge fund run by billionaire John Paulson seeking to reverse record losses in 2011, according to two people familiar with the matter.

The private bank is redeeming assets from Paulson's Advantage Fund and Advantage Plus Fund, said the people who asked not to be identified because the information is private.

Armel Leslie, a spokesman for Paulson, and Natalie Marin, a spokeswoman for Citigroup, declined to comment.

Citigroup's private bank in May advised clients not to add money to the Paulson funds, a person familiar with the matter said at the time.