Claren Road Clients Asked to Pull $1.97 Billion After Losses


Investors in Carlyle Group LP’s Claren Road Asset Management asked to pull about 48 percent of the hedge fund’s $4.1 billion in assets after losses this year, according to a person with knowledge of the matter.

The firm is facing $1.97 billion in withdrawals for the end of the quarter, said the person, who asked not to be named because the information is private. Its main fund has fallen 5.6 percent this year through mid-August on wagers on Greece, energy and financials, the person said.

Claren Road’s troubles started last year when it posted its first annual loss when wagers in U.S.-backed mortgage companies Fannie Mae and Freddie Mac turned sour. Its assets are down from a peak of $8.5 billion last September. Carlyle, which owns a 55 percent stake in the firm, said Monday in a filing it expects to write down the value of its investment by $100 million to $175 million in the third quarter…

Claren Road Clients Asked to Pull $1.97 Billion After Losses

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