Blackstone’s Alternative Asset Management (BAAM), the firm’s Hedge Fund Solutions Business, will launch an alternative investment-focused mutual fund offering daily liquidity – a first for the organization. With approximately $49 billion in AUM, BAAM is the largest discretionary allocator for hedge funds in the industry. The new fund, per the release, is a custom solution for strategic investors that leverage the firm’s longstanding relationships with some of the industry’s leading hedge fund managers.
Listed as the Blackstone Alternative Multi-Manager Fund (the “Fund”, Ticker: BXMMX), the product’s primary objective 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, according to the release.
Through the use of alternative investment strategies, Blackstone aims to provide low beta to equity and fixed income markets. The Fund’s multi-manager, multi-strategy structure, according to officials, 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. The firm will employ the same disciplined investment process and will utilize the same experienced investment team that has long served its institutional clients.