NEW YORK (TheStreet) - Blackstone Group LP (BX) plans to launch a hedge fund that will make major bets, an effort it hopes will eventually rival some of the largest firms in the business, sources say, the Wall Street Journal reports.
The private equity firm will fund several teams of traders with hundreds of millions of dollars to place a relatively small number of large, highly concentrated wagers, sources said.
The strategy is notable now as many hedge funds are shying away from making such outsize bets, the Journal added.
Combined, the teams' investments will form a multi-strategy hedge fund to be pitched to wealthy clients. The firm is confident the firm can hedge the overall risks, sources add.
The firm's shares closed higher to $33.46 on Friday.
TheStreet Ratings team rates BLACKSTONE GROUP LP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKSTONE GROUP LP (BX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."