Carlyle Hedge Fund Hit By Big October Loss

Nov 28 2007 | 7:33am ET

The Carlyle Group’s first hedge fund had been disappointing from the start, but it wasn’t until October that disappointment turned into disaster.

Carlyle-Blue Wave Management Partners lost 9.5% that month due to bad bets in the structured credit market, Bloomberg News reports. Until that point, the fund, which debuted in the spring, had simply failed to raise the $1 billion expected and had posted lackluster year-to-date returns of 0.2%.

The troubles have reportedly led to major redemption requests at the $690 million multi-strategy fund, but requests for Jan. 1—which were due on Oct. 15—did not reach 20% of total assets under management, the limit for redemptions in a given quarter. Investors have until Jan. 15 to request their money back at the beginning of the second quarter.

Just about 26% of Blue Wave’s assets are in credit, with the remainder split between long/short and event-driven portfolios.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...