Bloomberg News reports that clients withdrew $585.5m from the Blackstone Alternative Multi-Manager Fund in the first three weeks of this month, leaving it with $631.2m in assets, down from $1.2bn at the end of February, according to data from Morningstar.
The decline reflects a large redemption by Fidelity, which had put almost $1bn into the fund in 2013, according to a person familiar with the matter, who asked not to be identified.
Fidelity allocated client money to the Blackstone fund through its Portfolio Advisory Service, which manages assets on behalf of wealthy clients. Alternative investment firms including Blackstone, Carlyle Group LP, KKR & Co. and Apollo Global Management LLC have sought to attract more individual investors through such funds to broaden their client bases. Some have been forced to shut down offerings after failing to attract assets.
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