Citigroup unit to start portable alpha hedge fund

Citigroup Alternative Investments created a formal portable alpha investment center and will launch a Cayman Islands-based multistrategy hedge fund in August, according to an internal memo by Dean S. Barr, managing director and head of liquid investments. The fund will invest in a "wide variety of CAI strategies while actively hedging out certain bets," according to Mr. Barr's memo. CAI will offer the Portable Alpha Fund as a stand-alone vehicle and as the core alpha engine for other investment strategies, including leveraged versions of the fund and structured products.