Look out, Goldman. Take cover, Morgan Stanley. Citigroup is on the move in the race to better situate itself in the hedge fund industry.

Its latest move came yesterday when they announced they were acquiring Bisys for nearly $1.5 billion. Bisys works with hedge funds by providing them with administration services.

Another interesting facet of the deal: Citigroup is selling Bisys' retirement and insurance services arm to JC Flowers & Co, which is the private equity firm that recently attempted a would-be-record-breaking $25 billion buyout of Sallie Mae.

Citigroup added to its string of acquisitions on Wednesday by agreeing to buy Bisys, a provider of administration services for fund management companies.

The move forms part of Citigroup’s efforts to catch up with rivals Goldman Sachs and Morgan Stanley in the rapidly growing business of providing services to hedge funds.

(Continue reading this story on Financial Times)

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