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

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income