Blackstone’s Senfina Fund Down 20% in 2016 After July Loss

Updated on
  • Multimanager fund is said to decline about 5% last month
  • The unit is struggling after posting a banner year in 2015

How Deep and Challenging Are Hedge Fund Problems?

Senfina Advisors, the multimanager hedge fund at Blackstone Group LP, fell about 5 percent in July, according to three people with knowledge of the matter.

The performance widened the fund’s 2016 losses to roughly 20 percent, said the people, who asked not to be named because the information is private. Paula Chirhart, a Blackstone spokeswoman, declined to comment on the returns.

Senfina, which oversaw $1.9 billion at the end of June, is trying to bounce back after it plunged 17 percent amid market turmoil in February. The struggle marks a swift reversal in the fund’s fortunes after it had a banner year in 2015, rising 21 percent and ranking among the top performers in the industry.

Several of the best-known multimanager hedge funds, which allocate money across trading teams, have had to slowly work their way back from losses in the first quarter. Millennium Management was 0.3 percent lower through July, according to an investor document, having experienced its third-worst month ever in February.

Returns at Citadel’s Wellington fund recovered to be about flat in 2016 after gaining 1.7 percent this month through Aug. 18, according to a person with knowledge of the matter. The fund had declined 8 percent as of mid-March. The average stock-focused hedge fund has gained 2 percent this year, according to Hedge Fund Research Inc.

Blackstone, the world’s largest manager of alternative assets, oversaw $356 billion across its products at the end of the second quarter.

— With assistance by Katia Porzecanski

(Updates with Citadel performance through Aug. 18 in sixth paragraph.)
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