Blackstone Group, the asset manager run by Stephen Schwarzman, will shutter a mutual fund that allocates money to hedge fund managers as the vehicle’s main backer, Fidelity Investments, is pulling out.
Bloomberg News reports that the Blackstone Alternative Multi-Manager Fund will no longer accept new money and will be liquidated by May 31, according to a filing with the U.S. Securities and Exchange Commission last week. The fund’s investment adviser will seek to convert all of its holdings to cash and cash equivalents to meet anticipated redemption requests.
The fund was started in August of 2013 as a dedicated vehicle for Fidelity and returned an annual 3% since then, according to data compiled by Bloomberg. Assets in the fund have shrunk to $629.8m from $1.2bn at the end of February. At the end of last year, a Fidelity unit owned essentially all of the fund’s shares on behalf of its clients, according to regulatory filings.
Blackstone, in a statement late Thursday, said the fund had outperformed the broader hedge fund industry, as measured by the HFRX Global Hedge Fund Index, since inception.
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