It wasn’t so long ago that emerging markets were the hottest thing since bond arbitrage. But now that the world is heading into a global recession, those markets are cooling faster than a bottle of Smirnoff in Boris Yeltsin’s freezer.
DealBreaker reports that Citadel has just closed its emerging markets desk:
We’re told that, among other things, like the matter of misplacing more than half its clients’ money in the flagship, one of the factors that went into the decision was a matter of redundancy. Apparently higher ups in Chicago deemed it just plain silly to keep the unit going in light of the fact that Kaveh Alamuti, head of the global macro biz, also trades some EMs in his spare time.
It was, reportedly, a small operation. Just 8 employees have lost their jobs, Bess Levin of DealBreaker writes. Levin, in our book, has pretty much the best hedge fund spies sources in financial media now. Respect must be paid.