Citi's Ex-CEO Vikram Pandit To Make A Comeback In Hedge FundsVW Staff
After making the headlines for resigning as CEO of Citigroup, Vikram Pandit is now rumored to be on the verge of making a comeback in the hedge fund business. As reported by Kaja Whitehouse and Michelle Celarier in the New York Post, the departing CEO is now rumored to be in the crosshairs of Sutesh Sharma, founder of UK hedge fund, Portman Square Capital.
Although Pandit and Sharma’s Portman Square Capital have been reluctant to give into requests for comments on the matter, increased rumor leans towards the idea that Pandit may be making an in on the hedge fund. If this speculation does not materialize, Pandit is still believed to be eyeing other hedge funds. Some industry insiders, like Robert Olman of Alpha Search Advisory Partners, even believe that Pandit could go ahead and start his own hedge fund. “I wouldn’t be surprised if he felt the timing was right to join an existing fund, or start his own fund,” notes Olman. Nevertheless, the common belief is that Pandit will go to Portman. This is driven by the fact that Sharma was a money manager at Pandit’s now inoperative Old Lane Hedge fund.
Pandit’s history in the hedge fund business has been marked by notable accomplishments, following the launch of the Old Lane fund in 2006. A year into launching Old Lane fund, the former Citigroup Inc. (NYSE:C) CEO managed to sell the fund to Citigroup for $800 million, gleaning $165 million as returns. Despite the fact that Old Lane fund later on became a burden for Citigroup towards the fall on 2007, investors still hold a lot of admiration for Pandit. His rainmaker status still holds weight, as investors believe that he is closely connected to wealthy investors.
While many people may view Pandit’s Citigroup Inc. (NYSE:C) resignation in a negative light, the former Citigroup CEO has managed to walk out of the company with more than $200 million over the years. Similarly, he now has the opportunity to change his career path.