A former portfolio manager at a hedge fund firm owned by Carlyle Group has sued the company, saying the fund’s partners misled investors about the size of a losing bet tied to shipping rates.

The Carlyle-owned firm, Vermillion Asset Management, wound down last year after assets in its main fund dwindled from $2 billion to less than $50 million due to steep trading losses and investor withdrawals, and its co-founders left. Troubles at the firm were the subject of a front-page article in The Wall Street Journal in August. The firm has since been relaunched with a new strategy as Carlyle Commodity Management.