Wednesday, December 30, 2015

Claren Call For Carlyle Group?

One for the archives:

"Claren Road Asset Management, the hedge fund manager majority owned by Carlyle Group LP, suffered $950 million in withdrawal requests in the fourth quarter, according to a person familiar with the matter, leaving assets 85 percent below their peak last year. Claren Road will start January with $1.25 billion in assets, down from a high of $8.5 billion in September 2014, said the person, asking not to be identified because the information is private. The credit-oriented fund has struggled over the past 15 months with poor performance and an investor exodus. Its main fund tumbled 10.1 percent in 2014, its first annual loss since it started a decade ago, and dropped another 5.2 percent in the first three quarters of this year. After receiving redemption requests of about $2 billion in the third quarter, the firm told clients it would delay paying two-thirds of the money back to minimize damage to continuing investors. Redemption requests submitted in the fourth quarter will probably also face delayed repayment, the person said." 

In this age of rising stock markets and economic recovery? WTF?

Also see: Third Avenue 

People pulling their money out? What do they know that you do not?