Blackstone to close multi-strategy fund amid asset decline

Blackstone (NYSE:), the global investment firm, is closing its Diversified Multi-Strategy fund following a significant drop in assets, from £1.7 billion in December 2019 to £192 million as of October 27. The Ucits-compliant fund has underperformed, with a loss of about 2% since January 2020 compared to an average hedge fund gain of around 21%, according to data from HFR and Kepler Absolute Hedge.

The asset reduction reflects broader challenges within the industry. Sussex Partners noted that multi-strategy Ucits funds are facing difficult times. Across the sector, such mutual funds regulated by Ucits have seen their assets shrink by 30% over the past year.

Blackstone’s fund included investments managed by a range of firms, including Two Sigma, Bayview, Emso, Seiga Asset Management, and Magnetar Asset Management. The closure of this fund marks a retreat from a segment that has struggled to keep pace with the broader hedge fund market’s gains.

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