Carlyle to Shutter Blue Wave Hedge Fund After Losses

Carlyle Group sure is having a rough year.

Blue Wave, a joint venture started last year with former Deutsche Bank AG executives Rick Goldsmith and Ralph Reynolds, is the second Carlyle-affiliated fund to close this year. Carlyle Capital Corp., an Amsterdam-listed fund, collapsed in March after defaulting on $16.6 billion of debt.

Though not quite an implosion like CCC -- Carlyle did realize a 2% return so far in 2008 -- it's not enough to justify the fund's continued existence.