Blackstone to close multi-strategy fund as assets tumble 90%

investmentweek.co.uk:

Blackstone Diversified Multi-Strategy sought to provide investors with a diversified blend of alternative strategies and hedge fund managers in a single daily liquid UCITS fund.

The closure, first reported by the FT, was confirmed by the firm. Citing figures compiled by Kepler Absolute Hedge, the newspaper said the fund's assets fell from £1.7bn at the end of December 2019 to £192m on 27 October.

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Launched in September 2014, the Irish-domiciled Blackstone Diversified Multi-Strategy sought to provide investors with a diversified blend of alternative strategies and hedge fund managers in a single daily liquid UCITS fund.

A Blackstone spokesperson said: «This is a small, legacy fund of around $200m that has returned +4.5% compared to a global 60/40 portfolio that was down (-4.6%) since hiring new leadership in January 2021.

»We are in talks with clients to move their capital to newer strategies that offer greater flexibility than the current structure allows."

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