Struggling Blackstone-backed Senrigan creates separate vehicle

HONG KONG Fri Oct 12, 2012 12:18am EDT

HONG KONG Oct 12 (Reuters) - Senrigan Capital, an Asia-focused hedge fund backed by Blackstone Group, has removed five investments from its portfolio and placed them into a separate vehicle after heavy losses this year, two sources familiar with the matter said.

Senrigan, whose $1 billion under management last year has fallen by half, is calling the separate fund a "special purpose vehicle", the sources said.

Such vehicles are usually referred to as "side pockets" in the hedge fund industry, whereby funds separate out hard-to-sell, illiquid investments from the main portfolio.

Senrigan spokeswoman Katarina Bendle declined to comment.

The creation of the Senrigan vehicle comes amid a 15 percent drop in net asset value for the fund, which is headed by former Citadel trader Nick Taylor. Senrigan's 2012 record is among the worst performing of the major regional hedge funds.