Monday, February 22, 2016

Carlyle Dumps DGAM Hedge Fund of Fund Unit

The Carlyle Group will close Diversified Global Asset Management, its fund of hedge funds platform acquired in November 2013.  DGAM had $6.7 billion in managed and advised assets when it joined the Carlyle family.  It currently has less than $2 billion in assets under management.

DGAM's poor performance is similar to Carlyle's Claren Road hedge fund, which fell from $8.5 billion in 2014 to just over $1 billion, according to SeekingAlpha.

Between the two investment vehicles Carlyle saw AUM drop $12.2 billion.  It would be interesting to see DGAM and Claren Road's actual performance as Carlyle affiliates.

Update 2-28-16:  ZeroHedge reported investors withdrew $25 billion from hedge funds in January