Hedge fund manager plans to leave Citi

The portfolio manager of Citigroup Inc.’s struggling Falcon Strategies and ASTA/MAT hedge funds, Reaz Islam, is leaving after 18 years at the company. Falcon Strategies, a fixed-income hedge fund, lost more than 75% of its value, while the ASTA/MAT funds tumbled as much as 77% before staging a partial recovery this spring, according to a report in The Wall Street Journal. The fixed-income funds were marketed largely to individual investors, who believed the vehicles were low risk and conservatively managed. Citigroup decided last month to set aside $250 million to help some investors recoup a portion of their losses. The memo said Mr. Islam is leaving the division, without describing terms of his departure, adding that he will remain at the unit for a “transition period.”