Why Blackstone Alternative Multi‑Strategy Fund
A core alternative solution providing a diversified blend of alternative strategies and managers in a single daily liquid mutual fund.
Reasons to Invest
In pursuing its investment objective of capital appreciation,
Blackstone Alternative Multi-Strategy Fund seeks to deliver:
Invests in a variety of alternative strategies in an effort to provide diversified exposures that are less dependent on market movements.
Seeks to mitigate volatility through exposure to diversifying assets.
Seeks to deliver steady growth with a focus on maximizing risk-adjusted returns over a full market cycle.
There can be no assurance that the Fund will achieve its goals or avoid losses.
Blackstone Alternative Asset Management (BAAM) has partnered
with some of the world’s leading investors since 1995.
World’s largest discretionary investor in hedge funds1 with $81 billion in AUM2
Over 100 investment professionals with experience across all of the key investment strategies
Disciplined investment and operational due diligence; proprietary risk management and technology
Deep, differentiated relationships with hedge fund talent
Check the background of this firm on FINRA’s BrokerCheck.
1. Source: InvestHedge Billion Dollar Club (as of June 30, 2020) based on AUM.
2. AUM as of September 30, 2021.
Aims to ease the burden on financial advisors and investors of
evaluating and allocating to multiple single-strategy funds
Diversification is critical in investing and helps reduce risk in a portfolio. The Fund’s multi-manager structure provides built-in diversification for investors who seek to avoid single manager risk.
Access to Specialists
Specialists with expertise in specific alternative strategies are combined in one solution. Given the complexity of many of these strategies, it is unlikely that a single manager has expertise across all of them.
Dynamic allocation allows Blackstone to rotate into more attractive sectors, strategies and managers as markets evolve.
|Sage Rock||Event-Driven||Multi Strategy|
|Emerging Markets Credit Manager||Relative Value||Fixed Income – Sovereign|
Data as of June 1, 2021
- Blackstone and its affiliates have financial interests in asset managers. Any allocation by Blackstone to a subsidiary or other affiliate benefits Blackstone Inc. and any redemption or reduction of such allocation would be detrimental to Blackstone Inc., creating potential conflicts of interest in allocation decisions. For a discussion of this and other conflicts, please see the Important Risks section at the end of this page.
- BAIA manages a portion of the Fund’s assets directly. Such investments presently include allocations to funds managed by third-party asset managers, opportunistic trades and hedging. BAIA allocations are subject to change and BAIA’s fees on directly managed assets are not reduced by a payment to a sub‐adviser.
- Inactive sub-advisers are not currently managing any Fund assets. Allocations may change at any time without notice.
Why Alternative Strategies
We are focused on the pursuit of alpha, which we believe
requires a differentiated approach to alternative investing
These managers typically have a defensible edge that thwarts others from directly competing with them. It would be difficult for a competitor to catch up and build a comparable franchise in a short period of time. For example, a large-scale, quantitative hedge fund manager that sources, parses and consumes massive data sets might have a competitive edge.
Some market participants have political or social motivations that may not be economically rational. This dynamic allows private investors to assume potentially attractive risk that only exists because of non-economic decision-making. One example is the U.S. government mandating that Fannie Mae and Freddie Mac reduce their credit risk to stay solvent with the objective of ensuring their ability to continue issuing mortgages for the greater good of the economy
Blackstone is one of the world’s largest alternative investment firms with a dynamic ecosystem fueled by ideas and deep resources, which we believe is a strong competitive advantage. We partner with hedge fund managers, banks, corporations and even governments to source, underwrite and structure investments. Our size and robust underwriting may allow us to negotiate attractive terms, and we seek to pay fees only for alpha, not beta.
Reflects the opinions and views of BAIA as of the date of the latest reports and is not intended to be a prediction of how any financial markets will perform in the future. Nothing contained herein should be relied upon as a promise or representation as to past or future performance of a fund or any other entity, transaction, or investment.
Seeking to capitalize on competitive advantages in scale,
structuring, and strategy rotation to benefit investors
- Brought to you by the world’s largest discretionary allocator to hedge funds1
- 88 professionals with investment research and risk management expertise 2
- Dedicated access to strategies with scarce capacity
- Tailored mandates democratize access to specific skills and exposures
- Innovative open-architecture framework accommodates a wide array of strategies
- Separate accounts increase portfolio efficiency and transparency
- Allocations informed by proprietary insights from the Blackstone ecosystem3
- Multi-strategy, multi-manager construct allows dynamic shifts in positioning
- Ability to monetize market dislocations
Note: There can be no assurance that the Fund will achieve its goals or avoid losses. Diversification does not ensure a profit or guarantee against loss.
- Source InvestHedge Billion Dollar Club, as of December 31, 2020 based on AUM.
- As of July 1, 2021.
- Subject to Blackstone’s information walls and confidentiality and fiduciary obligations.
A natural complement to a traditional allocation.
The charts above represent illustrative examples. There can be no assurance that the Fund will achieve its goals or avoid losses.
Allocating to the Blackstone Alternative Multi-Strategy Fund from a combination of existing equity and fixed income sleeves may mitigate overall portfolio volatility while maintaining exposure to growth assets.
The charts above represent illustrative examples. There can be no assurance that the Fund will achieve its goals or avoid losses.
Blackstone Alternative Multi‑Strategy Fund represents a core allocation that is designed to stand on its own or provide a complement to other alternative allocations.
Blackstone seeks to add value through top-down strategy
selection and bottom-up manager evaluation.
Literature and Multimedia Content
BXMIX Sub-Adviser Profiles
BXMIX Update | Q4 2021
Fund Documents and Public Filings
Statement of Additional Information
Annual Proxy Voting Report
2021 Year-End Distribution
2020 Year-End Distribution
Nominating Committee Charter
This material is not an offer to sell the Fund’s securities and is not soliciting an offer to buy the Fund’s securities. All investors should consider the investment objectives, risks, charges and expenses of BXMIX, Class I carefully before investing. All investors are urged to carefully read the prospectus and the summary prospectus in its entirety before investing. The prospectus and the summary prospectus contain this and other information about BXMIX and are available on BXMIX’s website at www.bxmix.com.
Please note that additional details concerning the Fund’s performance, liquidity and asset class exposures are available upon request. Please contact your BAAM representative for further information.
No Assurance of Investment Return. Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. All returns include dividend and capital gain distributions. There can be no assurance that the Fund will achieve its goals or avoid losses. Diversification does not ensure a profit or guarantee against loss. Information about the Fund, including current month-end performance, is available on the Fund’s website at www.bxmix.com or by calling 855-890-7725.
ERISA Fiduciary Disclosure: The foregoing information has not been provided in a fiduciary capacity under ERISA, and it is not intended to be, and should not be considered as, impartial investment advice. If you are an individual retirement investor, contact your financial advisor or other fiduciary unrelated to BAIA about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances.
Opinions and Trends. Opinions expressed reflect the current opinions of Blackstone as of the date appearing in the Materials only and are based on Blackstone’s opinions of the current market environment, which are subject to change. Certain information contained in the Materials discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. There can be no assurances that any of the trends described herein will continue or will not reverse. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of, future events or results.
An investment in the Fund should be considered a speculative investment that entails substantial risks; you may lose part or all of your investment or your investment may not perform as well as other investments. The Fund’s investments involve special risks including, but not limited to, loss of all or a significant portion of the investment due to leveraging, short-selling, or other speculative practices, lack of liquidity and volatility of returns. The following is a summary description of certain additional principal risks of investing in the Fund:
Allocation Risk – Blackstone’s judgment about the attractiveness, value or market trends affecting a particular asset class, investment style, sub-adviser or security may be incorrect and this may have a negative impact upon performance. Market Risk and Selection Risk – One or more markets may go down in value, possibly sharply and unpredictably, affecting the values of individual securities held by the Fund. Derivatives Risk – the use of derivatives involves the risk that their value may not move as expected relative to the value of the relevant underlying assets, rates, or indices. Derivatives can be subject to counterparty credit risk and may entail investment exposure greater than their notional amount. Debt Securities Risk – investments in bonds and certain asset-backed securities are subject to risks, including but not limit to, the credit risk of the issuer of the security, the risk that the issuer undergoes a restructuring or a similar event, the risk that inflation decreases the value of assets or income from the investments, and the risk that interest rates changes adversely impact the debt investments. Equity Securities Risk – prices of equity and preferred securities fluctuate based on changes in a company’s financial condition and overall market and economic conditions. Mortgage- and Asset-Backed Securities Risk – involves credit, interest rate, prepayment and extension risk, as well as the risk of default of the underlying mortgage or asset, particularly during times of economic downturn. Multi-Manager Risk– managers may make investment decisions which conflict with each other and as a result, the Fund could incur transaction costs without accomplishing any net investment result. Leverage Risk – use of leverage can produce volatility and may exaggerate changes in the net asset value of Fund shares and in the return on the portfolio, which may increase the risk that the Fund will lose more than it has invested. Large Purchase or Redemption Risk – large redemption or purchase activity could have adverse effects on performance to the extent that the Fund incurs additional costs or is required to sell securities, invest cash, or hold a relatively large amount of cash at times when it would not otherwise do so. Conflicts of Interest: Blackstone and the Sub-Advisers have conflicts of interest that could interfere with their management of the Fund. These conflicts, which are disclosed in the Fund’s Statement of Additional Information, include, without limitation:
- Selection of Sub-Advisers. Blackstone compensates the Sub-Advisers out of the management fee it receives from the Fund. This could create an incentive for Blackstone to select Sub-Advisers with lower fee rates.
- Financial Interests in Sub‐Advisers and Service Providers. Blackstone, the Sub‐Advisers, and their affiliates have financial interests in asset managers and financial service providers. Allocating to an affiliate (or hiring such entity as a service provider) benefits The Blackstone Group Inc. and the relevant Sub‐Adviser and redemptions from an affiliate (or terminating such entity as a service provider) would be detrimental to The Blackstone Group Inc. and the relevant Sub‐Adviser. For example:
- Blackstone Strategic Alliance Advisors L.L.C. (“BSAA”), an affiliate of BAIA, manages the Strategic Alliance Funds (the “SAF Funds”) that provide seed capital to emerging alternative asset managers (the “SAF Managers”) in exchange for a revenue share arrangement. Seiga Asset Management Limited, a SAF Manager, is a sub‐adviser to the Fund. The revenue generated for BSAA related to the Fund’s investment with a SAF Manager is rebated to the Fund. The Fund will not otherwise participate in any of the economic arrangements between the SAF Funds and any SAF Manager with which the Fund invests.
- Blackstone Strategic Capital Advisors L.L.C. (“BSCA”), an affiliate of BAIA, manages certain funds (the “BSCA Funds”) that acquire equity interests in established alternative asset managers (the “Strategic Capital Managers”). One of the Strategic Capital Managers in which the BSCA Funds have a minority interest is Magnetar Capital Partners L.P., a control affiliate of Magnetar Asset Management LLC, a sub‐adviser for the Fund. The Fund will not participate in any of the economic arrangements between the BSCA Funds and any Strategic Capital Manager with which the Fund invests.
- Blackstone Real Estate Special Situations Advisors L.L.C. (“BRESSA”), an affiliate of BAIA and an indirect wholly-owned subsidiary of Blackstone Inc., serves as a Sub-Advisor Sub-Adviser. BRESSA invests primarily in liquid, commercial and residential real estate-related debt instruments.
- Blackstone Liquid Credit Strategies LLC (“BX LCS”), an affiliate of BAIA and an indirect wholly‐owned subsidiary of Blackstone Inc., serves as a Sub‐Adviser. BX LCS invests primarily in below investment grade corporate credit.
- Blackstone utilizes technology offered by Arcesium LLC (“Arcesium”) to provide certain middle‐ and back‐office services and technology to the Fund. The parent company of a Sub‐Adviser owns a controlling, majority interest in Arcesium and Blackstone Alternative Asset Management L.P. owns a non‐controlling, minority interest in Arcesium.
- Other Activities of Blackstone or the Sub-Advisers. The activities in which Blackstone, the Sub-Advisers, or their affiliates are involved in on behalf of other accounts may create conflicts of interest or limit the flexibility that the Fund may otherwise have to participate in certain investments. For example, if Blackstone or a Sub-Adviser comes into possession of material non-public information with respect to a company, then Blackstone or the relevant Sub-Adviser generally will be restricted from investing in securities issued by that company. Further, Blackstone generally will be restricted from investing in portfolio companies of its affiliated private equity business.
- Allocation of Investment Opportunities. Blackstone and the Sub-Advisers (or their affiliates) manage other accounts and have other clients with investment objectives and strategies that are similar to, or overlap with, the investment objective and strategy of the fund, creating potential conflicts of interest in investment and allocation decisions. These conflicts of interest are exacerbated to the extent that the other clients are proprietary or pay higher fees or performance-based fees.
Glossary of Terms: Gross Exposure: Reflects the aggregate of long and short investment positions in relation to the net asset value. The gross exposure is one indication of the level of leverage in a portfolio. Net Exposure: This is the difference between long and short investment positions in relation to the net asset value. Long Exposure: A long position occurs when an individual owns securities. Short Exposure: Short selling a security not actually owned at the time of sale. Short positions can also generate returns when the price of a security declines. Beta: A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole. Alpha: A risk-adjusted performance measure that represents the average return on a portfolio over and above that predicted by the capital asset pricing model (CAPM), given the portfolio’s beta and the average market return. More specifically, Jensen’s Measure is used to calculate alpha. Standard Deviation: A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.
Index Comparisons: Indices are unmanaged and investors cannot invest in an index. Indices are provided for illustrative purposes only. They have not been selected to represent appropriate benchmarks for BXMIX, but rather are disclosed to allow for comparison of BXMIX’s performance to that of well-known and widely recognized indices. The indices may include holdings that are substantially different than investments held by BXMIX and do not reflect the strategy of the Fund. Comparisons to indices have limitations because indices have risk profiles, volatility, asset composition and other material characteristics that may differ from BXMIX. The indices do not reflect the deduction of fees or expenses. In the case of equity indices, performance of the indices reflects the reinvestment of dividends. Index data is obtained from unaffiliated third parties and is subject to subsequent adjustments. Blackstone makes no assurances as to the accuracy or completeness thereof.
Glossary of Indices: Market indices obtained through Bloomberg, HFR Asset Management, MSCI and Morngingstar, as applicable. MSCIWorld Index TR: Market capitalization weighted index designed to provide a broad measure of large and mid-cap equity performance across 23 developed markets countries. HFRX Global Hedge Fund Index: Designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies falling within four principal strategies: equity hedge, event driven, macro/CTA, and relative value arbitrage. Strategies are asset weighted based on the distribution of assets in the hedge fund industry. Barclays Global Aggregate Bond Index TR: Flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. Barclays US Aggregate Bond Index: A broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. Morningstar Multistrategy Category: Represents the average performance of mutual funds categorized as “multistrategy” funds by Morningstar, Inc. These funds allocate capital (at least 30% combined) to a mix of alternative strategies that aim to minimize exposure to traditional market risks. S&P 500 Index: Market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading.
None of the indices presented are benchmarks or targets for the Fund. Indices are unmanaged and investors cannot invest in an index.
Prepared by Blackstone Securities Partners L.P., a member of FINRA and an affiliate of Blackstone Alternative Investment Advisors LLC, the investment adviser of the Fund.