Hedge Funds Performance

Claren Road irks investors over Lehman exposure


Claren Road Asset Management, the global long/short credit firm praised by investors last year for its decision to forgo raising gates and allow unfettered redemptions, has come under fire recently for how it handled its Lehman Brothers exposure.

Whereas many hedge funds wrote off assets stuck in Lehman Brothers to zero when that firm collapsed into bankruptcy last September, Claren Road didn't. It did write down their value by half, according to an investor. But some Claren investors are grumbling that the move allowed the firm to post a profit for 2008 and collect performance fees, which are paid