Blackstone Alternative Asset Management (BAAM), the hedge fund solutions business of Blackstone Group, plans to launch its first alternative investment-focused mutual fund for individual investors.
The mutual fund called as Blackstone Alternative Multi-Manager Fund is a registered, open-end mutual fund that is managed by Blackstone Alternative Investment Advisors LLC. It is designed to provide custom solutions for strategic investors.
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The fund will charge fees of 3.25% of assets annually, including a 1.95% management fee, according to a US SEC filing.
The investment objective of the mutual fund is to look for capital appreciation by allocating assets among different investment sub-advisers with experience in managing alternative investment strategies.
Blackstone also plans to 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 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."
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By GlobalDataStephen Sullens, senior managing director and head of portfolio management for BAAM, said: "We approached the portfolio construction process by leveraging our extensive experience constructing custom solutions for sophisticated institutional investors.
"Investors in this product will benefit from the full breadth of Blackstone’s manager due diligence and screening procedures, top down asset allocation views and ongoing portfolio management capabilities," Sullens added.
Some of the sub-advisors of Blackstone Alternative Muti-Manager Fund that will receive allocations include Two Sigma Advisers, Cerberus Sub-Advisory, Credit Suisse Hedging-Griffo ServiVos Internacionais S.A, HealthCor Management and Caspian Capital, and Boussard and Gavaudan Asset Management among others.
