Earlier Redemptions
Claren Road investors had asked to redeem $374 million last quarter, a person with knowledge of the matter said earlier this month. The firm had faced redemptions of $1.9 billion at the end of last year when it tumbled 10.1 percent.
Before then, Claren Road had a history of avoiding large swings in its monthly and annual investment returns. The firm was founded in 2005 by former Citigroup Inc. credit traders Brian Riano, John Eckerson, Sean Fahey and Marino. Carlyle bought its Claren Road stake as part of a push into hedge funds. The fund is part of a Carlyle unit called global market strategies led by Mitch Petrick.
Carlyle, based in Washington, has met with little success in the hedge-fund industry. The managers of its commodities hedge fund, Vermillion Asset Management, departed after losses, a person with knowledge of the matter said last month. Its $4.5 billion Emerging Sovereign Group, whose assets have grown almost three-fold since it was acquired in 2011, slumped 22 percent last year in one of its funds, its third consecutive annual loss. The credit crisis forced Carlyle to liquidate its Blue Wave hedge fund in 2008.