Blackstone Group is launching a high-risk fund that will pick the best trades from third-party hedge funds in exchange for paying them a fee.
Financial Times reported that the new offering, managed by former Duquesne Capital partner Greg Geiling, request that hedge funds Blackstone already invest in to submit their boldest trading ideas for an undisclosed commission.
The article said that Blackstone has been running the offering as a prototype for the last several months. The launch was prompted by Blackstone’s prediction that investor appetite for risk and big returns is growing due to the low global investment yields.
The world’s largest alternative asset management firm, Blackstone has total assets under management of $159 billion. It deals in both hedge funds and private equity.