Senrigan Side-Pockets Losing Bets As Assets Plummet

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.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...