Blue Wave Capital
Blue Wave Capital | Hedge Fund NotesBelow is our Hedge Fund Tracker profile on Blue Wave Capital ran by the Carlyle Group.
Resource #1: Carlyle Group plans to launch a $1 billion multistrategy hedge fund next month, in what will be the company's first foray into hedge funds.
Carlyle Group last year started developing its new Carlyle-Blue Wave hedge fund unit, hiring Ralph Reynolds and Rick Goldsmith from Deutsche Bank to head it. Its move into hedge funds highlights a broader trend of private equity firms diversifying their businesses, as a way of tapping demand from their existing investors for hedge funds and other specialist funds, and in some cases to prepare for public flotations.
Reynolds was global head of equity proprietary trading at Deutsche Bank until last year, and Goldsmith previously ran a hedge-fund investment unit at Deutsche Bank Asset Management.
The first Carlyle-Blue Wave fund, called Carlyle Multi-Strategy, will use a range of strategies, such as taking long and short positions in stocks and investing in companies undergoing events such as mergers and acquisitions. A report from the Dow Jones said the fund started trading about two weeks ago with internal money. source
Resource #2: Carlyle, the US private equity giant, has suffered a setback after it was forced to liquidate its $600 million first and only hedge fund because it had failed to achieve "critical mass".
The ill-fated Blue Wave Partners Management was set up just months before the credit crunch hit last year.
It is thought to be the firm's first investment failure since Carlyle Capital Corporation, its Dutch affiliate, collapsed under a $22 billion mortgage securities debt burden.
Carlyle's high profile executives - David Rubenstein, Daniel D'Aniello and William Conway - lost money on CCC.
Partners and senior staff at Carlyle were also personally invested in Blue Wave. It is likely that they have lost money alongside other backers. source
Resource #3: Research Edge has analysts in four sectors, each with significant hedge fund and/or street experience. The company is soon expanding to a fifth sector, technology, and aims to eventually cover nine sectors. McCullough, who has worked as a portfolio manager and in other positions at several hedge funds - including Carlyle-Blue Wave Capital Partners and Dawson Herman Capital Management - combines his analysts' calls with his own macro views in Research Edge's research. While the research is aimed at hedge funds, McCullough said he's been surprised by how many traditional money managers have become clients. The fact that Research Edge is independent and doesn't do investment banking, he said, is what the mutual fund managers like the most.
McCullough, who in college was captain of Yale's ice hockey team, points out that before the market started really crashing, Research Edge told clients that the smart move would be to have 96% of their assets in cash...