New York (HedgeCo.net) – The last few months have not been kind to Carlyle Group as the company’s earnings report released in July showed earnings that were down 38% on a year over year basis. Also in July, the company’s Claren Road Asset Management hedge fund came under fire as consultant Cliffwater LLC suggested clients should exit the fund.

Carlyle finally got some good news in recent weeks as one of their hedge fund operators made a bearish bet on the Chinese yuan and it is paying off big according to the Wall Street Journal. Emerging Sovereign Group’s Nexus Fund purchased put options on the yuan and according to the article the fund made $100 million in two days last week.

“The 75% return for Emerging Sovereign Group’s Nexus fund developed after China unexpectedly pushed the value of the yuan lower on Aug. 11, according to people familiar with the matter.”
Given the way things were going for Carlyle this summer, this had to be much-welcomed news.

Rick Pendergraft
Research Analyst
HedgeCoVest