New York (HedgeCo.net) – One day after having a noted financial consultant advise clients to leave one of their hedge funds, Carlyle Group LP reported on Wednesday that their earnings dropped 38% on a year over year basis. Much of the blame for the decline in earnings was due to a sharp decline in energy holdings and a decline in their hedge funds.

The Claren Road Asset Management hedge fund was the fund that consultant Cliffwater LLC suggested clients should exit, and it was a sore spot in Carlyle’s earnings. According to an article from Reuters, the firm’s economic net income fell from $289 million to $180 million. The economic net income or ENI is an earnings metric used to place a mark-to-market value on a portfolio.

While Carlyle has diversified in to different investment spectrums, they are still true to their private equity roots with that segment accounting for 33% of AUM and 99% of earnings in the most recent quarter.

Rick Pendergraft
Research Analyst
HedgeCoVest