June 6 Blackstone Group has increased its bet on former Citadel trader Nick Taylor by offering him another $50 million to co-invest with his hedge fund which is struggling to make money for its investors, sources with knowledge of the matter said.
Taylor, one of Asia's closely followed portfolio managers,
launched hedge fund Senrigan Capital in 2009 with about $150 million, including $100 million in seed capital from Blackstone's Strategic Alliance Fund. Senrigan later received another $50 million from Blackstone and grew to $1 billion last year.
Co-investments are rare in hedge fund investing in Asia. The agreement allows the U.S. private equity group to invest alongside Senrigan in one or more of Taylor's ideas.
The event-driven hedge fund run by British-born Taylor lost 8.6 percent last year, erasing its entire 5.85 percent gain in 2010. The fund fell a further 7.2 percent through mid-May this year, sources familiar with Senrigan's returns said.
Blackstone and Hong Kong-based Taylor declined to comment.