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.