BXDSM Header

An alternative UCITS
fund for investors seeking diversification

Why Blackstone Diversified Multi-Strategy Fund?

A core alternative solution providing a diversified blend of hedge fund strategies and managers in a single daily liquid UCITS.

Reasons to Invest

In pursuing its investment objective of capital appreciation,
Blackstone Alternative Multi-Strategy Fund seeks to deliver:

Diversification

Invests in a variety of alternative strategies in an effort to provide diversified exposures that are less dependent on market movements.

Volatility Mitigation

Seeks to mitigate volatility through exposure to diversifying assets.

Risk-Adjusted Returns

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.

Why Blackstone?

Blackstone Alternative Asset Management (BAAM) has
partnered with some of the world’s leading investors since 1995

Position

World’s largest discretionary investor in hedge funds 1 with $79 billion in AUM2

People

Over 100 investment professionals with experience across all of the key investment strategies

Process

Disciplined investment and operational due diligence; proprietary risk management and technology

Partnership

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 June 30, 2021.

Why Multi-Manager?

A diversified blend of hedge fund strategies and managers in a
single, daily-liquid UCITS fund

Diversification

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 hedge fund strategies are combined in one solution. Given the complexity of many hedge fund strategies, it is unlikely that a single manager has expertise across all strategies.


Dynamic Allocation

Dynamic allocation allows Blackstone to rotate into more attractive sectors, strategies and managers as markets evolve.

Equity

ManagerStrategySub-Strategy
HealthCorEquity HedgeEquity Long Short
EndeavourEquity HedgeEquity Market Neutral
Two Sigma AdvisersEquity HedgeEquity Market Neutral
SeigaEquity HedgeEquity Long Short
JasperEquity HedgeEquity Long Short

Classification

Equity

Credit

Manager StrategySub-Strategy
BayviewRelative ValueFixed Income – Asset Backed
BRESSA1Relative ValueFixed Income – Asset Backed
EJFRelative ValueFixed Income – Asset Backed
BX LCS1Relative ValueFixed Income – Asset Backed
CaspianEvent DrivenDistressed/Restructuring

Classification

Credit

Multi-Asset

ManagerStrategySub-Strategy
Sage RockEvent-DrivenMulti Strategy
Magnetar1Event-DrivenRisk Arbitrage
EmsoMacroDiscretionary Thematic
D.E. ShawMulti-StrategyN/A
BAIA-Direct2Multi-StrategyN/A
BayforestMacroMulti Strategy
Emerging Markets Credit ManagerRelative ValueFixed Income – Sovereign

Classification

Multi-Asset

Inactive Managers<sup>3</sup>

ManagerStrategySub-Strategy
CerberusRelative ValueFixed Income – Asset Backed
WaterfallRelative ValueFixed Income – Asset Backed
NephliaEvent DrivenReinsurance

Classification

Inactive

Data as of June 1, 2021

  1. Blackstone and its affiliates have financial interests in asset managers. Any allocation by Blackstone to a subsidiary or other affiliate benefits The Blackstone Group Inc. and any redemption or reduction of such allocation would be detrimental to The Blackstone Group 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.
  2. BAIA manages a portion of the Fund’s assets directly. Such investments presently include opportunistic trades and hedging. BAIA’s fees on directly managed assets are typically not reduced by a payment to a sub‐ad viser.
  3. Inactive managers 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

Identifying Managers
with Moats

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.

Focusing on
Non-Economic Actors

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

Sourcing Direct
Investments

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.

Asset Allocation

A natural complement to a traditional allocation.

The charts above represent illustrative examples. The value of BXDMS shares may go down as well as up and there can be no assurance that the Fund will achieve its investment objectives or avoid significant losses.

Allocating to the Blackstone Diversified 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. The value of BXDMS shares may go down as well as up and there can be no assurance that the Fund will achieve its investment objectives or avoid significant losses.

Blackstone Diversified Multi-Strategy Fund represents a core allocation that is designed to stand on its own or provide a complement to other alternative allocations.

Portfolio Characteristics

BXDMS includes multiple hedge fund strategies and investment
styles with the aim of capturing opportunities across asset classes
and geographies.

Sub-Strategy Summary

Asset Class Exposure

Data as of March 31, 2021

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Please see important Disclosure Regarding Exposure at the end of this presentation. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

LONG SHORT NET
Asia general 1.20% -0.55% 0.65%
China/HK/Taiwan 14.65% -0.65% 14.00%
Core Europe 13.09% -7.77% 5.32%
Japan 3.78% -13.66% (9.88%)
Lat. Am./Caribbean 5.50% -0.82% 4.69%
Middle East/Africa 3.80% -0.23% 3.57%
Peripheral Europe 4.17% -2.28% 1.88%
US/Canada 133.38% -52.19% 81.19%
Total 179.58% -78.16% 101.42%
LONG SHORT NET
Asia general 0.10% -0.35% 0.24%
China/HK/Taiwan 0.11% -0.52% -0.42%
Core Europe 1.45% -6.27% -4.83%
Japan 0.14% -2.04% -1.90%
Lat. Am./Caribbean 0.34% -0.04% 0.31%
Middle East/Africa 0.00% -0.21% -0.21%
Peripheral Europe 0.02% -0.32% -0.29%
US/Canada 0.60% -0.50% 0.11%
Total 2.77% -10.24% -7.47%
LONG SHORT NET
Consumer Discretionary 5.86% -5.13% 0.73%
Consumer Staples 2.42% -1.87% 0.55%
Energy 0.92% -0.30% 0.62%
Financials 9.40% -9.22% 0.19%
Health Care 12.88% -7.05% 5.83%
Industrials 8.16% -3.81% 4.35%
Information Technology 13.38% -5.69% 7.69%
Materials 3.45% -0.69% 1.76%
Real Estate 4.23% -3.29% 0.95%
Telecommunication Services 3.83% -2.11% 1.72%
Utilities 2.28% -0.55% 1.73%
Index* 15.49% -11.69% 3.79%
Unclassified** 14.89% -0.56% 14.32%
Total 97.18% -51.95% 45.23%

Data as of March 31, 2021

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

Reflects exposure to currency‐related derivative instruments. The market value of these instruments will change based on fluctuations in currency exchange rates. Typically, the Fund has other holdings that are also sensitive to currency exchange rates (e.g., physical currency and/or equity and fixed investments that are denominated in a currency). As the value of these other holdings are not reflected in the above exposure figures, the table does not reflect the Fund’s total currency exposure.

*Comprised of index futures, options on index futures, ETFs, and ETF options

**Do not have a GICS sector assign

Data as of March 31, 2021

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Exposure figures are shown as a percentage of Fund Net Asset Value.

Explanatory notes regarding calculation of exposure: (a) exposure data represents market value except in the case of derivative instruments; (b) for options, exposure data represents the delta adjusted notional; (c) for interest‐rate instruments, exposure data represents the notional of the 10‐year equivalent instrument; and (d) for all other derivatives, exposure data represents notional value. Positions of unknown type (if any) are excluded from exposure data. Exposure data reflects fund holdings as of the relevant trade date and includes unsettled trades.

Ratings are presented as an equally weighted composite of rating provided by the following rating agencies: Standard & Poor’s (“S&P”), Moody’s Investor Service, Fitch, Kroll Bond Rating Agency, and Morningstar. Please note that other ratings agencies may offer ratings that vary from those for securities currently represented as “Investment Grade” or “Non‐Investment Grade.” Investment grade is a rating of a bond that has a relatively low risk of default. For S&P, “Investment Grade” bonds are those rated above BBB‐ and “Non‐Investment Grade” bonds are rated below Investment grade to D. “Not Rated” securities generally include securitizations where the issuer did not request a rating. “Non Ratable” securities includes index products and select government instruments.

Investment Committee

Blackstone seeks to add value through top-down strategy
selection and bottom-up manager evaluation.

Key Share Class Information

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Other Documents

Document NameAction
EU Sustainable Finance DisclosureDOWNLOAD
Memorandum and Articles of AssociationENGLISH GERMAN
Country SupplementsAUSTRIA DENMARK LUXEMBOURG UK
Singapore Information MemorandumDOWNLOAD
UK Tax Notice 2020 2019 2018 2017 2016
Summary of Remuneration PolicyDOWNLOAD
Shareholder Rights Directive and Cross Border Distribution RegulationDOWNLOAD
Annual Report SDR II Engagement PolicyDOWNLOAD
Historical Fact CardsVIEW ALL
Sub-Adviser ProfilesDOWNLOAD
BXDMS Navigating New Market DynamicsVIEW
BXDMS Q2 2021 UpdateVIEW

Important Risks

Blackstone Diversified Multi-Strategy Fund is a sub‐fund of Blackstone Alternative Investment Funds plc, an umbrella fund established as a UCITS with segregated liability between sub funds. Blackstone Alternative Investment Funds plc is authorised and regulated by the Central Bank of Ireland.

All investors should consider the investment objectives, risks, charges and expenses of the Fund), carefully before investing. The Key Investor Information Document (‘KIID’), Prospectus and Supplement (collectively, the “Offering Documents”) contain this and other information about the Fund. All investors are urged to carefully read the Offering Documents in their entirety before investing.

This page is not an offer to sell the Fund’s securities and is not soliciting an offer to buy the Fund’s securities in any jurisdiction where the offer or sale is not permitted.

The price information contained herein is estimated and unaudited and subject to change.

There can be no assurance that BXDMS will achieve its investment objective or avoid significant losses. Past performance is not necessarily indicative of future results. It should be appreciated that the value of Shares may go down as well as up. An investment in a Fund involves investment risks, including possible loss of the entire amount invested. The capital return and income of BXDMS is based on the capital appreciation and income on the investments it holds, less expenses incurred. Therefore, the Fund’s return may be expected to fluctuate in response to changes in such capital appreciation or income. 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 similar investments. The Fund’s investments involve significant risks including, but not limited to, loss of all or a significant portion of the investment due to leveraging, synthetic short-selling, derivatives or other speculative practices. Other risks include, but are not limited to: allocation risk, conflicts of interest risk, counterparty risk, foreign investments risk, high portfolio turnover risk, model and technology risk, multi-manager risk and volatility risk. See “Risk Factors” of the prospectus for a detailed discussion of these and other risks applicable to the Fund.

Investor rights and access to collective redress mechanisms

The legal relationship between an investor and Blackstone Alternative Investment Funds plc, an umbrella fund with segregated liability between sub-funds including the sub-fund, Blackstone Diversified Multi-Strategy Fund (the umbrella fund and each sub-fund, collectively and individually, the “Fund”) is a contractual one, governed principally by the application form executed by the investor when subscribing for shares in the Fund and the constitutional document.  As an investor in the Fund, an investor has various rights which derive from: 

Such rights may include, but are not limited to, the right to participate in changes in the net asset value of such investor’s shares; the right to a share of any dividends or distributions paid out by the Fund; the right to attend at general meetings of the shareholders of the Fund and to vote on any motion tabled at such meetings; subject to certain conditions, the right to call a general meeting of investors in the Fund; the right to request the redemption of the investor’s shares by the Fund and certain rights in respect of how the Fund uses the investor’s personal data. The exercise by an investor of these rights is strictly subject to the terms and conditions of the relevant Fund documents and/or legislation from which these rights derive.  The foregoing is only a brief summary of examples of the rights of an investor in relation to the Fund. For a more detailed description of their rights vis-à-vis the Fund, investors should consult their own legal advisor.   

Both the subscription agreement between an investor and the Fund and the constitutional document are governed by Irish law.  In the event that an investor believes they have suffered loss as a result of the actions or inactions of the Fund or any relevant UCITS management company, an investor may seek to take proceedings against such parties in the Irish courts or, in certain circumstances, in the courts of another jurisdiction.  Whether the judgement of a foreign court will be recognised and enforced against the Fund or a UCITS management company in Ireland will depend on the circumstances of the case and will be subject to the relevant national and international law that governs such matters in Ireland. At present, pending implementation of Directive (EU) 2020/1828 on representative actions for consumers, there are no recognised means, in Ireland or at a European Union level, by which an investor who may have suffered a loss as result of the actions or inactions of the Fund or the UCITS management company may seek collective redress.

*Applicable Law and Regulation in this regard includes, but is not limited to, the Companies Act 2014, the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019, the Irish Data Protection Acts 1988 to 2018, the General Data Protection Regulation (Regulation (EU) 2016/679), the EU ePrivacy Directive 2002/58/EC, each as amended or replaced from time to time.

Termination of marketing arrangements

Please note that the Fund may decide to terminate the arrangements made for the marketing of the Fund in one or more EU member states pursuant to the UCITS marketing passport in accordance with the procedure provided for under the applicable laws that implement Article 93a of Directive 2009/65/EC (the UCITS Directive).

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 Offering Documents, include, without limitation:


  1. The value of BXDMS shares may go down as well as up and there can be no assurance that the Fund will achieve its investment objectives or avoid significant losses.
  2. BAAM refers to Blackstone Alternative Asset Management L.P., the largest (by AUM) investment manager in Blackstone’s Hedge Fund Solutions Group. Blackstone Alternative Investment Advisors LLC (“BAIA”), the investment manager for BXDMS, shares employees, facilities and processes with BAAM.
  3. Source: InvestHedge Billion Dollar Club (as of December 31, 2019) based on AUM.
  4. AUM as of March 31, 2020, estimated and unaudited. AUM includes committed but uncalled capital.

Index Comparison
The Fund is actively managed and uses the MSCI World Total Return Index, Barclays Global Aggregate Index and HFRX Global Hedge Fund Index for performance comparison purposes only. While a proportion of the Fund’s assets may be components of and have similar weightings to one or more of the referenced indices, BAIA and the sub-advisers may use their discretion to invest a significant proportion of the Fund in assets which are not included in, or with different weightings to, the indices. There is no guarantee that the Fund’s performance will match or exceed any reference index. Blackstone makes no assurances as to the accuracy or completeness thereof. Indices are not investible products. Investors cannot invest directly in an index.

Glossary of Indices
Market indices obtained through Bloomberg, HFR Asset Management and MSCI, as applicable. Bloomberg Barclays Global Aggregate Bond Index: provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan- European Aggregate, and the Asian-Pacific Aggregate Indexes. MSCI World Index: A market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI World is maintained by Morgan Stanley Capital International, and is comprised of stocks from 23 developed markets in the world. HFRX Global Hedge Fund Index: HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry. The methodology is based on defined and predetermined rules and objective criteria to select and rebalance components to maximize representation of the Hedge Fund Universe.