Blackstone partners with Fidelity on new alt-focused mutual fund

JAN 15, 2014
The Blackstone Group has partnered with Fidelity Investment's Portfolio Advisory Service to launch its first daily valued alternative investment-focused mutual fund. Sources familiar with the matter said Fidelity has provided close to $1 billion in funding for The Blackstone Alternative Multi-Manager Fund. The multiasset mutual fund is open to institutional clients of Blackstone. The fund is also active and available through Fidelity's managed accounts program. The fund, which was initially announced last month, is an open-end mutual fund managed by Blackstone Alternative Investment Advisors. The investment objective of the fund is to seek capital appreciation by allocating assets among a variety of investment subadvisers with experience managing alternative investment strategies. Blackstone may also manage a portion of the fund's assets directly and may invest in unaffiliated hedge funds. “In the three years we have been planning for this product launch, we have built a very solid relationship with Fidelity,” said J. Tomilson Hill, vice chairman of The Blackstone Group and CEO of Blackstone Alternative Asset Management, in a prepared statement. The fund's subadvisers are Two Sigma Advisers, Cerberus, Credit Suisse Hedging-Griffo Servicos Internacionais, HealthCor Management, Caspian Capital, Boussard and Gavaudan Asset Management, Wellington Management, Good Hill Partners, BTG Pactual Asset Management U.S., Chatham Asset Management and Nephila Capital. The Blackstone Group's assets under management hit a record high of $229.6 billion as of June 30, up 5.2% from the previous quarter, according to the alternative money manager's July earnings statement. James Comtois is a reporter at sister publication Pensions & Investments.

Latest News

SEC corporate enforcement hits multi-decade low as agency refocuses on fraud
SEC corporate enforcement hits multi-decade low as agency refocuses on fraud

Just five actions were started in the first half of fiscal 2026, a new analysis finds.

Beyond the Business: Why Advisors Must Help Owners Separate Wealth from Identity
Beyond the Business: Why Advisors Must Help Owners Separate Wealth from Identity

For business owners, the company is often more than an income source. It becomes their largest asset, their retirement plan, and in many cases, part of their identity. Advisors who understand that dynamics can deliver far greater value than traditional financial planning alone

Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow
Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow

John S. Winslow, 57, was indicted just over a year ago for his scheme to steal from an elderly client.

Vestmark, Hamachi push AI further for advisor portfolio intelligence
Vestmark, Hamachi push AI further for advisor portfolio intelligence

Hamachi's new model portfolio partnership and an industry-first solution from Vestmark join the growing wave of AI tools for wealth managers.

Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California
Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California

Meanwhile, LPL attracted a five-advisor team managing $380 million in Kansas, while a veteran with stripes from Morgan Stanley, UBS, and Fidelity has joined Prime Capital Financial.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline