This Hedge Fund Lost $139 Million Last Year and Citigroup is Feeling the Pain
- GTEC Pandion fund started unraveling in August on FX trades
- Parent GF Securities is now coming under regulatory scrutiny
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Three months after news first emerged of a hedge fund blowup that threatens to saddle Citigroup Inc. with millions of dollars in losses, details of the fund’s implosion are becoming clearer.
GF Securities Co. said Wednesday its GTEC Pandion Multi-Strategy Fund SP lost $139 million in 2018 primarily on foreign exchange trades, leaving it with negative capital. As the fund’s losses spiraled last year, it faced margin calls from Citigroup, its prime broker, according to the GF statement and people with knowledge of the matter.