Citadel, the giant Chicago-based hedge fund, was up 5% in January. Of course, that barely begins to cover the 53% it lost in 2008, prompting it to halt redemptions, to much uproar.
So here’s the deal. Redemptions are still halted, but the company is seeing a little bit of improvement. As noted, they’ve started to gain back a little, and they’re seeing improvements in the liquidity of their holdings. So it’s setting a distribution program that will allow it to make periodic distributions to investors, as it sees fit.
Dealbook got a copy of the letter, embedded below: