• Hedge fund led by investor Michael Lau oversees $1.8 billion
  • Haynes Gallagher to join in senior position in next few months

Trader Haynes Gallagher left Citigroup Inc. last week after a decade to join Candlewood Investment Group, the hedge fund led by Michael Lau, in a senior position on its structured credit team.

Gallagher will join the firm in the next few months, according to a person with knowledge of the matter. Candlewood, which focuses on trading structured credit as well as distressed securities, oversees $1.8 billion.

Gallagher, who was a director at the New York-based bank, focused on non-agency mortgage-backed securities and similar products at Citigroup’s Institutional Client Group. Citigroup Chief Executive Officer Michael Corbat is cutting costs across the institutional and consumer businesses, as well as operations and technology, and trying to boost revenue. The bank has been trimming fixed-income staff as market volatility damps profit. It’s also not replacing those who leave.

Gallagher declined to comment as did Citigroup spokesman Scott Helfman and Janet Miller, Candlewood’s general counsel and chief operating officer.

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