Friday, 24 October 2014
Last updated 19 hours ago
Oct 12 2012 | 12:48pm ET
Senrigan Capital has moved five seriously underperforming holdings into a side pocket as its losses mount and investors begin to clamor for their money back.
The Hong Kong-based fund, headed by former Citadel Investment Group trader Nick Taylor, has lost 15% this year and seen half of its assets evaporate, leaving it with just US$500 million.
The side-pocket will hold roughly US$40 million worth of assets. Senrigan told clients last month that they will be paid 6% of their stake in the hedge fund as it liquidates the assets. Among the investments moved into the side-pocket is a stake in Australian miner Sundance Resources, which is being acquired by China's Hanlong Group.
The Blackstone Group has been a major backer of Senrigan, seeding it two years ago and adding a co-investment earlier this year. All told, Blackstone has invested $200 million in the hedge fund, and gotten very little in return. Senrigan lost 8.7% last year, more than erasing its 2010 gain.
According to Reuters, investors have been filing redemption requests with Senrigan.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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