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:
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. Diversification does not ensure a profit or
guarantee against loss.
Blackstone Alternative Asset Management (BAAM)1 has
partnered with some of the world’s leading investors since 1995
Large investment team 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. 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.
2. Source: InvestHedge Billion Dollar Club (as of December 31, 2019) based on AUM.
3. AUM as of March 31, 2020.
4.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.
A diversified blend of hedge fund strategies and managers in a
single, daily-liquid UCITS fund
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 allows Blackstone to rotate into more attractive sectors, strategies and managers as markets evolve.
Data as of March 31, 2022
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
- 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.
- 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.
- Inactive managers are not currently managing any Fund assets. Allocations may change at any time without notice.
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
- Deep team with investment research and risk management expertise
- 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 ecosystem2
- 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 June 30, 2021 based on AUM.
- Subject to Blackstone’s information walls and confidentiality and fiduciary obligations.
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. .Diversification does not ensure a profit or guarantee against loss.
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.
Blackstone seeks to add value through top-down strategy
selection and bottom-up manager evaluation.
Key Share Class Information
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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.
- All Offering Documents are available in English. Certain share class specific KIIDs are available in French, German, Greek, Dutch, Danish, Finnish, Swedish, Norwegian, Spanish and Italian as indicated on the Fund’s website at www.bxdmx.com.
- A summary, in English, of investors rights and information on access to collective redress mechanism can be obtained on the Fund’s website or by clicking here.
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. 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. The following is a summary description of certain principal risks of investing in BXDMS:
- General economic and market conditions can affect the price and volatility of investments.
- The success of the Fund depends upon BAIA’s skill in determining the Fund’s allocation to alternative investment strategies and in selecting the best mix of sub-advisers. There can be no guarantee that sub-advisers will stick to the Investment strategy for which they were selected, or that these strategies will be successful.
- The Fund’s investments will include shares, bonds and FDI. Certain investment techniques and FDI may increase the adverse impact to the Fund. In particular, there is a risk of infinite loss when using an FDI that derives its value from other assets decreasing.
- BAIA and sub-advisers have conflicts of interest that could interfere with their management of the Fund, including the allocation of time and investment opportunities.
- Some of the sub-advisers selected may hold only a small number of investments, or assets that move closely in line with assets held by other sub-advisers. Sub-advisers may make investment or hedging decisions which conflict or offset with other sub-advisers.
- Increased legal, tax and other regulatory developments may adversely impact the ability of BAIA and the subadvisers to utilize certain investment techniques or invest in certain assets.
- The Fund may invest in countries or through over investment funds that are subject to a weak legal or financial framework, as a result of which it can be hard to enforce ownership rights or repatriate funds.
- The Fund may invest in currencies other than its base currency. The success of measures to protect the Fund or a Class against currency movements cannot be certain.
- The Fund is dependent on BAIA, sub-advisers and other service providers for certain investment management, operational and financial support services. A deficiency in any of these services may have an adverse impact on the Fund.
- The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
- Low trading volumes, lack of buyers, large positions or legal restrictions may limit or prevent the Fund from selling particular assets quickly and/or at desirable prices.
For further information on the risks faced by the Fund, see “Risk Factors“ in the Prospectus and Prospectus Supplement for the Fund, available from www.bxdms.com.
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:
- The application form, the constitutional document, and other relevant documents of the Fund; and
- Applicable Law and Regulation*.
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:
- 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 Blackstone Inc. or the relevant Sub-Adviser and redemptions from an affiliate (or terminating such entity as a service provider) would be detrimental to Blackstone Inc. or 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.
- 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 Inc., 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 BAAM 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.
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.