Citigroup Alternative Investments, with $39 billion in assets, is taking its first steps into portable alpha. The move is being pushed by Dean Barr, who made establishing portable alpha his top priority when he joined the firm in November to become head of liquid alternative investments, a mandate that includes hedge funds, structured finance and managed futures. To head the effort, Citigroup has hired David Beeman, chief operating officer of Thunder Bay Capital Management, and a long-time Barr crony. Primary targets will be pension funds, which typically favor the low volatility nature of the strategy.

Barr, who was unavailable to comment by press time, formed Thunder Bay a few years ago after previously serving as global cio at Deutsche Asset Management (iialternatives.com, 2/14/03). He also founded Advanced Investment Technology, an investment management firm that he sold to State Street Global Advisors in 1997. Prior to Thunder Bay, Beeman also spent time at DeAM, and was head of development for the firm's global research center.