Blackstone to Close Dedicated Mutual Fund
April 07 2016 - 6:44PM
Business Wire
Blackstone continues building registered fund
platform through Blackstone Alternative Multi-Strategy Fund
Blackstone (NYSE:BX) announced that Blackstone Alternative
Investment Advisors (“BAIA”), an affiliate of its hedge fund
solutions business, will be closing the Blackstone Alternative
Multi-Manager Fund (“BXMMX”), the smaller of its two mutual fund
products. Blackstone launched BXMMX in August of 2013 as a
dedicated vehicle for Fidelity Investments. As of March 31, 2016,
the AUM of BXMMX was $631 million. Blackstone will liquidate the
fund on or before May 31, 2016.
BXMMX sought capital appreciation through a diversified global
set of exposures, traded by alternative asset managers, which
demonstrated relatively low beta to traditional markets and
produced attractive risk-adjusted performance. BXMMX is operated as
a U.S. mutual fund under the Investment Company Act of 1940.
Blackstone noted that BXMMX delivered strong risk-adjusted
returns since its launch through March 31, 2016, capturing
approximately 66% of the performance of global equities (as
measured by the MSCI ACWI Index1) with approximately 37% of the
volatility2. In addition, the cumulative return of BXMMX outpaced
the broader hedge fund industry over this same period by 12.4% net
of fees and expenses (as measured by the HFRX Global Hedge Fund
Index). Additional information and current performance data is
available here.
Given significant investor demand for this type of exposure,
Blackstone built a global registered fund platform that offers
liquid investment solutions. This platform currently has
approximately $6.8 billion in AUM, including $5.9 billion in
solutions that offer daily liquidity. The largest fund on this
platform is an alternative mutual fund that has an investment
objective that is identical to the objective of BXMMX. This fund,
Blackstone Alternative Multi-Strategy Fund (“BXMIX”), has
experienced significant demand across a broad investor base and has
grown to approximately $4.3 billion since its launch in June of
2014.
Blackstone has allocated significant resources to facilitate the
continued growth of this platform. This includes a dedicated
investment committee that is responsible for ongoing investment,
asset allocation, and oversight of all of BAIA’s registered funds.
Consistent with its historical approach to team-based portfolio
management, Blackstone will designate each of the members on this
investment committee as portfolio managers of the Blackstone
Alternative Multi-Strategy Fund.
Fidelity Investments is not affiliated with Blackstone.
All investors should consider the investment objectives, risks,
charges and expenses of the Blackstone Alternative Multi-Strategy
Fund and the Blackstone Alternative Multi-Manager Fund
(collectively the “Funds”) carefully before investing. The
prospectus and summary prospectus contain this and other
information about the Funds. You can obtain a prospectus and a
summary prospectus, from the Fund’s website
(www.blackstone.com/bammf). All investors are urged to carefully
read the prospectus and summary prospectus, in its entirety before
investing. Interests in the Funds are offered through Blackstone
Advisory Partners L.P., a member of FINRA and an affiliate of
Blackstone Alternative Investment Advisors and BAAM.
The performance data quoted represents past performance. Current
performance may be lower or higher than the quoted past
performance, which cannot guarantee future results. The investment
return and principal value of an investment will fluctuate so that
an investor’s shares, when redeemed, may be worth more or less than
their original cost and current performance may be lower or higher
than the performance data quoted. For up-to-date standardized total
returns, including the most recent month-end performance, please
visit www.blackstone.com/bammf.
Information regarding market indices was obtained through
Bloomberg. Indices are unmanaged and investors cannot invest in an
index. The volatility of the indices presented may be materially
different from that of the performance of BXMMX. In addition, the
indices employ different investment guidelines and criteria than
BXMMX; as a result, the holdings in BXMMX may differ significantly
from the securities that comprise the indices.
1. MSCI ACWI Index is used as Blackstone believes it to be a
broad measure of global market performance.
Index definition: The MSCI ACWI Index is a market
capitalization weighted index designed to provide a broad measure
of equity-market performance throughout the world. The index is
maintained by Morgan Stanley Capital International, and is
comprised of stocks from both developed and emerging markets.
2. Volatility measured using standard deviation, which is a
measure of the dispersion of a set of data from its mean.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160407006602/en/
BlackstoneChristine Anderson,
212-583-5182christine.anderson@blackstone.com
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