The global hedge fund industry is prospering, but a prominent player is suffering heavy redemptions, figures show.

The global hedge fund industry continues to expand in asset terms towards the $3 trillion mark, but in the case of one prominent fund, investors have asked to pull almost half of $4.1 billion of assets from Claren Road Asset Management, which is run by Carlyle Group, according to data from a regulatory filing.

Claren Road Asset Management’s main fund has fallen 5.6 per cent this year through mid-August on wagers on Greece, energy and financials, Bloomberg reported.

A filing with the Securities and Exchange Commission by Carlyle said investors have requested to pull the equivalent of 48 per cent of Claren Road’s assets under management, or $2.0 billion.

Problems for Claren Road began in 2014 when it logged its first annual loss when bets on US mortgage-backed companies Fannie Mae and Freddie Mac went wrong. The firm had a peak in assets of $8.5 billion last September (source: Bloomberg).

A filing with the Securities and Exchange Commission, dated Aug. 17, states: “These redemptions, and any future reductions in assets managed by Claren Road, will result in lower management fees earned by Claren Road in subsequent periods and lower earnings contributions to the partnership from Claren Road. This is not expected to materially impact the Partnership’s liquidity or compliance with debt covenants.”

“As a result of these events, on August 17, 2015, the Partnership concluded that the carrying value of its intangible assets associated with the acquisition of Claren Road is impaired. The estimated net impact to the partnership’s third quarter financial results, including the expected reduction of related liabilities for contingent consideration associated with Claren Road of $41 million as of June 30, 2015, is between $100 million and $175 million. The impairment charge is a non-cash expense and is based on certain assumptions and estimates that involve a high degree of judgment. The actual amount of the charge will be determined by the future inflows and outflows and performance of Claren Road’s funds as well as Claren Road’s plans for managing the redemptions.”

On its website, Carlyle says of Claren Road: “Claren Road Asset Management, a long/short credit manager focusing on the global high grade and high yield markets, commenced operations in January 2006. The founding members of Claren Road are Brian Riano, John Eckerson, Sean Fahey and Albert Marino. Carlyle acquired a 55 per cent stake in Claren Road on December 31, 2010. Claren Road serves as the investment adviser to private pooled investment vehicles, or funds, that are offered to investors on a private placement basis. The founders jointly manage Claren Road’s day-to-day ordinary course of business operations.”

According to latest quarterly data from Chicago-headquartered Hedge Fund Research, the industry as a whole is in relatively rude health; investors allocated $21.5 billion in net new capital to hedge funds in 2Q15, the largest quarterly inflow since the second quarter of last year, with allocations concentrated in Equity Hedge and Relative Value Arbitrage strategies, as well as in the industry’s largest hedge fund firms.

The second quarter inflow increased first-half 2015 inflows to $39.7 billion and total industry capital to $2.97 trillion globally, as the hedge fund industry approaches the $3 trillion milestone. The HFRI Fund Weighted Composite Index® gained by 2.53 per cent in 1H15, the strongest half-year of out-performance over US equities since the first half of 2010.