Tuesday, July 16, 2013

Hedge funds for the masses

Tired of the same boring mutual funds? Want some hedge fund action but don't have the $5 million minimum initial investment? Now there is a product for you - a mutual fund of hedge funds called the Blackstone Alternative Multi-Manager Fund. Among others, here are the managers to whom your capital would be allocated.

 Two Sigma Advisers
 Cerberus Sub-Advisory
 Credit Suisse Hedging-Griffo Servios Internacionais
 HealthCor Management
 Caspian Capital
 Boussard and Gavaudan Asset Management
 Wellington Management
 Good Hill Partners
 BTG Pactual Asset Management
 Chatham Asset Management
 Nephila Capital

And just like in a typical mutual fund you get daily liquidity, except for those pesky early redemption fees. As far as disclosure, Blackstone doesn't want the world to know what fee split arrangement it has with these hedge fund managers (sub-advisors) and will only disclose the aggregate fee.
From the SEC filing: - Applicants also request an order exempting the Subadvised Series from certain disclosure obligations that may require each Subadvised Series to disclose fees paid by the Advisor to each Sub-Advisor. 
The portfolio is a mix of strategies including distressed credit, black box equity investing, long/short credit, various emerging markets, structured products, etc. It's all the stuff that retail investors wanted to know about but were afraid to ask.

Now that institutional investors are not stepping up to hedge fund investing the way they used to, it's time to tap the retail universe.

Blackstone mutual fund of hedge funds

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