Carlyle's ESG Up 45% YTD on Correct China Calls

Aug 20 2015 | 8:06pm ET

It was only a matter of time before hedge funds that have been on the right side of China’s market roller coaster began reporting some impressive performance figures. 

Carlyle’s Emerging Sovereign Group, an internal hedge fund whose Nexus strategy manages approximately $200 million, has reportedly risen approximately 60% since the start of July due to successful wagers that the Chinese economy, and its markets, would deteriorate. Nexus makes directional plays to capitalize on macroeconomic events.

Overall, Nexus is up 45% so far this year, according to a Bloomberg article citing unidentified individuals. 

The news is a welcome change of pace for Carlyle, whose Claren Road and Vermillion Asset Management have been battered in recent months by high-level defections and poor returns. 

ESG was among the hedge funds in which Carlyle acquired a majority interest starting in 2011. It has reportedly grown nearly to nearly three times its size over the past four years, despite losing 7% in its flagship fund during 2014.

One of the largest so-called Tiger seeds, ESG was founded in 2002 with capital from Julian Robertson of Tiger Management fame. 


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