Wires

Struggling Blackstone-backed Senrigan creates separate vehicle

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By Nishant Kumar

HONG KONG, Oct 12 (Reuters) - Senrigan Capital, anAsia-focused hedge fund backed by Blackstone Group , hasremoved five investments from its portfolio and placed them intoa separate vehicle after heavy losses this year, two sourcesfamiliar with the matter said.

Senrigan, whose $1 billion under management last year hasfallen by half, is calling the separate fund a "special purposevehicle", the sources said.

Such vehicles are usually referred to as "side pockets" inthe hedge fund industry, whereby funds separate outhard-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 percentdrop in net asset value for the fund, which is headed by formerCitadel trader Nick Taylor. Senrigan's 2012 record is among theworst performing of the major regional hedge funds.

(Reporting by Nishant Kumar; Editing by Michael Flaherty andEdwina Gibbs)

((nishant.kumar@thomsonreuters.com)(+852 28474064)(ReutersMessaging: nishant.kumar.reuters.com@reuters.net))

Keywords: SENRIGAN HEDGEFUND/ASIA