Blackstone-Backed Senrigan Hedge Fund Said to Gain 13% This Yearby
Senrigan's assets recovered to just under $475 million
Assets as low as $265 million in 2013 on Sundance losses
Senrigan Capital Group, the hedge-fund firm backed by Blackstone Group LP, continued outperforming other Asian managers focused on corporate events such as mergers this year, helping fuel a recovery in assets from a 2013 low.
The Senrigan Master Fund returned about 13 percent in the first nine months, said people with knowledge of the matter who asked not to be identified as the information is private. Assets under management for the firm led by former Credit Suisse Group AG proprietary trader Nick Taylor rebounded to just under $475 million, from a low of $265 million at the end of July 2013, one of the people said.
Senrigan’s recovery is a boon for Blackstone, whose backing helped the firm amass $1 billion of assets in less than two years after its 2009 inception. Blackstone stuck by Senrigan as other investors pulled capital amid a losing streak stretching from 2011 to 2013, when it was stung by the collapse of a deal involving Australian mining company Sundance Resources Ltd. Senrigan was the first Asia-based hedge-fund company backed by Blackstone, the world’s largest manager of alternative assets, after the 2008 global financial crisis.
Asian event-driven funds on average gained 3.2 percent in the first nine months of this year, according to an index compiled by Singapore-based Eurekahedge Pte. Such funds typically speculate on companies undergoing major changes such as mergers or debt restructurings.
Senrigan is bouncing back amid Japanese reforms to encourage corporate mergers, China’s moves to consolidate state-owned companies and bolster private investment, as well as reorganizations of family-controlled Asia businesses. Asian companies have been involved in $972 billion of acquisitions announced in 2015, a 56 percent increase over a year earlier, according to data compiled by Bloomberg.
The latest assets under management include money in a Japan event-driven fund Senrigan started in September 2014, said one of the people. The Japan fund returned 9 percent this year, according to this person. Taylor didn’t reply to messages seeking comment.
Senrigan’s Master Fund returned 21 percent in 2014, outpacing peers. That was its best annual return and brought the fund back above the historical peak net asset value known as the high-water mark, allowing managers to start charging performance fees on profits again, people familiar with its performance said at the time.