Citi is set to make a hedge fund it bought five months ago the flagship of its alternative investments division at the expense of its $2.4bn (€1.7bn) Tribeca fund, which it is shutting down after three years and several top level reshuffles.

Old Lane Capital, the $4bn hedge fund co-founded by Vikram Pandit, will become Citi's flagship alternatives fund once Tribeca is wound down.