Wednesday, 24 August 2016
Last updated 4 hours ago
Sep 29 2010 | 8:56am ET
The Blackstone Group’s fund of hedge funds unit has struck upon a new business line: seeding former proprietary traders’ new hedge funds.
Blackstone Alternative Asset Management plans to launch a fund dedicated to seeding traders chased from banks by the newly-enacted Volcker rule, which bars proprietary trading. The new vehicle could close as soon as next month, Reuters reports.
The move comes after BAAM agreed to back a new hedge fund headed by Credit Suisse’s top commodities arbitrage trader, George Taylor. Blackstone is investing $150 million in the unnamed fund, which will invest in commodities and energy, as well as currencies and other macro strategies.
BAAM has $28.5 billion in assets under management.