Blackstone Unveils Retail Alternative Investment Product

Jul 17 2013 | 5:35am ET

The usually separate worlds of hedge funds and retail investment products just got a little closer. Blackstone Alternative Asset Management is launching its first hedge fund-like mutual fund.

Blackstone’s hedge fund unit, BAAM, which is the world’s largest discretionary allocator to hedge funds with approximately $49 billion under management, is developing this custom solution for a strategic investor. The new vehicle, Blackstone Alternative Multi-Manager Fund, will allocate assets among a variety of investment sub-advisers with experience managing alternative investment strategies. Blackstone may also manage a portion of the fund’s assets directly and may invest in unaffiliated hedge funds.

J. Tomilson Hill, vice-chairman of Blackstone and CEO of BAAM, said, “We are delighted to enter this market and to offer a daily liquid product that provides portfolio diversification through alternative strategies that are designed to be uncorrelated with those of traditional asset classes.”

Through the use of alternative investment strategies, Blackstone seeks to provide low beta to equity and fixed income markets.

Currently, sub-advisers in the fund include Two Sigma Advisers, Cerberus Sub-Advisory I, Credit Suisse Hedging-Griffo Servos Internacionais, HealthCor Management, Caspian Capital, Boussard and Gavaudan Asset Management, Wellington Management Company, Good Hill Partners, BTG Pactual Asset Management US, Chatham Asset Management and Nephila Capital.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note