Citigroup Inc.'s alternative investments unit agreed to buy Carlton Hill Global Capital LLC, a New York money manager specializing in credit derivatives.
The 12-employee Carlton Hill was founded by two Morgan Stanley veterans: James O'Brien and Jonathan Dorfman, each of whom spent roughly 20 years in its fixed-income division. They would run the global fixed-income group at Citi Alternative Investments, according to a memo Tuesday from Carlton Hill's chief, John Havens. The price was not disclosed.
Mr. Havens is part of a group of traders who left Morgan Stanley in 2005 to start a hedge fund, Old Lane Partners, which Citi acquired this year. One of Old Lane's founders is another Morgan Stanley alumnus, Vikram Pandit, runs Citi's investment banking group.
After posting dismal third-quarter results that were weighed down by turmoil in the global credit markets, Citi shook up the management of its investment bank, ousting some of its top fixed-income traders and executives.
