Trial and error

Investors often use good times to experiment outside their expertise. Several private equity firms and hedge funds, for example, used the leverage boom to grow into others’ territory. That could work out well for some. But such adventures could also haunt some big names. Carlyle’s dabbling in a couple of hedge fund areas, for example, hasn’t panned out so well. The firm is winding down its multi-strategy hedge fund business, saying it couldn’t drum up enough investors to make it worthwhile. Sepa...