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
| Manager | Strategy | Sub-Strategy |
|---|---|---|
| HealthCor | Equity Hedge | Equity Long Short |
| Endeavour | Equity Hedge | Equity Market Neutral |
| Two Sigma Advisers | Equity Hedge | Equity Market Neutral |
| Seiga | Equity Hedge | Equity Long Short |
| Jasper | Equity Hedge | Equity Long Short |
Classification
Equity
Multi-Asset
| Manager | Strategy | Sub-Strategy |
|---|---|---|
| Sage Rock | Event-Driven | Multi Strategy |
| Magnetar1 | Event-Driven | Risk Arbitrage |
| Emso | Macro | Discretionary Thematic |
| D.E. Shaw | Multi-Strategy | N/A |
| BAIA-Direct2 | Multi-Strategy | N/A |
| Bayforest | Macro | Multi Strategy |
| Emerging Markets Credit Manager | Relative Value | Fixed Income – Sovereign |
Classification
Multi-Asset
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 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.
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.
Investment Committee
Blackstone seeks to add value through top-down strategy
selection and bottom-up manager evaluation.
Key Share Class Information
Other Documents
| Document Name | Action | |
|---|---|---|
| EU Sustainable Finance Disclosure | DOWNLOAD | |
| Memorandum and Articles of Association | ENGLISH GERMAN | |
| Country Supplements | AUSTRIA DENMARK LUXEMBOURG UK | |
| Singapore Information Memorandum | DOWNLOAD | |
| UK Tax Notice | 2020 2019 2018 2017 2016 | |
| Summary of Remuneration Policy | DOWNLOAD | |
| Shareholder Rights Directive and Cross Border Distribution Regulation | DOWNLOAD | |
| Annual Report SDR II Engagement Policy | DOWNLOAD | |
| Historical Fact Cards | VIEW ALL | |
| Sub-Adviser Profiles | DOWNLOAD | |
| BXDMS Navigating New Market Dynamics | VIEW | |
| BXDMS Q2 2021 Update | VIEW |
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.
- 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 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:
- 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 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.
- 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.
- Source: InvestHedge Billion Dollar Club (as of December 31, 2019) based on AUM.
- 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.