Citi to Relaunch Hedge Fund Unit

NEW YORK (TheStreet) -- Citigroup(C Quote) is seeking a do-over -- or at least a makeover -- of the unit containing its troubled hedge fund operations, according to a report in The Financial Times.

Unnamed sources within the company told the FT that Citigroup is seeking to change the name of the unit -- which presently has $14 billion under management -- from Citi Alternative Investments to Citi Capital Advisors. The move is intended to distance the unit from two years of poor performance and negative publicity.

According to those sources, John Dorfman and Jim O'Brien, two former Morgan Stanley executives who run CAI, wanted to completely purge the Citi name from the unit, but the idea was rejected.

-- Written by Ty Wenger in New York

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