This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Blackstone’s Hedge Fund Solutions Business Set To Launch An Open End, Daily Liquid, Alternative Mutual Fund

Blackstone (NYSE:BX) announced that Blackstone Alternative Asset Management (“BAAM”), its hedge fund solutions business, will launch its first alternative investment-focused mutual fund that offers daily liquidity. BAAM, which is the world’s largest discretionary allocator to hedge funds and has approximately $49 billion under management, is developing this custom solution for a strategic investor by leveraging its longstanding relationships with some of the industry’s leading hedge fund managers.

J. Tomilson Hill, Vice-Chairman of Blackstone and CEO of BAAM, said, “We achieved our status as a premier hedge fund solutions provider by preserving capital in the midst of volatile markets and by developing innovative solutions to meet our investors’ needs. 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.”

The Blackstone Alternative Multi-Manager Fund (the “Fund”, Ticker: BXMMX) is a registered, open-end mutual fund that is managed by Blackstone Alternative Investment Advisors LLC. The investment objective of the Fund is to seek capital appreciation by allocating assets among a variety of investment sub-advisers with experience managing non-traditional or “alternative” investment strategies. Blackstone may also manage a portion of the Fund’s assets directly and may invest in unaffiliated hedge funds.

Through the use of alternative investment strategies, Blackstone seeks to provide low beta to equity and fixed income markets. The Fund’s multi-manager, multi-strategy structure will allow Blackstone to dynamically shift capital to take advantage of the team’s top-down market views with the goal of managing risk and generating alpha. Blackstone will employ the same disciplined investment process and will utilize the same experienced investment team that has long served its institutional clients.

In describing this initiative, John McCormick, Senior Managing Director and Head of Global Business Strategy for BAAM said, “Blackstone has spent the last three years analyzing and preparing to enter the market for liquid alternatives. Our research led us to believe that there are a few critical success factors that will separate the winners from the losers. First, you have to provide access to leading investment talent. Our industry position and relationships allow us to offer access to a group of the highest-conviction hedge fund managers on BAAM’s roster — managers currently representing a significant amount of BAAM’s capital on a dollar and percentage basis. Our track record of structuring value-added transactions has enabled us to secure this capacity. Second, significant investments in technology and infrastructure are necessary in order to operate effectively in a daily environment, subject to 1940 Act rules. Finally, you have to ensure that your manager due diligence and investment processes are consistent with those that have proven successful over time, and that the underlying strategies lend themselves to a successful transition to a daily, more highly-regulated environment.”

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,032.00 -7.49 -0.04%
S&P 500 1,991.03 -1.34 -0.07%
NASDAQ 4,542.4420 +10.3380 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs