NEW YORK--(BUSINESS WIRE)--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.