Hedge funds can be an effective diversfication tool for investors.
Understanding Hedge Funds
Delivering Attractive Risk-Adjusted Returns*
Hedge funds seek to provide diversified exposures that are less dependent on market movements. Both before and after the global financial crisis, hedge funds have had a low correlation with large-cap U.S. stocks.
Proving Hard to Find Diversification**
Over time, non-correlated asset classes are becoming increasingly difficult to find.
Past performance is not indicative of future results. Indices are provided for illustrative purposes only. Indices are unmanaged and investors cannot invest in an index. They have not been selected to represent appropriate benchmarks or targets for any Blackstone vehicle. The indices include holdings that are substantially different than investments held by any Blackstone vehicle and do not reflect the strategy of any such vehicle. Indices have risk profiles, volatility, asset composition and other material characteristics that will differ from any Blackstone vehicle. 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.
* The asset classes presented are represented by the following indices: “Hedge Funds”: HFRI Fund Weighted Composite Index TR; “U.S. Equities”: S&P 500 Index TR; “Publicly Traded REITs”: DJ US Select REIT Index TR; “U.S. High Yield”: Bloomberg Barclays US Corporate High Yield Index TR; “Global Equities”: MSCI World Index Gross TR USD; “U.S. Fixed Income”: Bloomberg Barclays US Aggregate Bond Index TR; “Global Fixed Income”: Bloomberg Barclays Global Aggregate Bond Index TR USD; “Commodities”: S&P GSCI Index TR
** “2000-2009” data covers the period January 1, 2000 – December 31, 2009. “2010-2020” data covers the period January 1, 2010 – December 31, 2020. For “Treasuries” we use Bloomberg Barclays U.S. Treasury Intermediate Index TR, for “Gold”: S&P GSCI Gold Index TR, for “Global Investment Grade Bonds”: Bloomberg Barclays Global Aggregate Bond TR, for “Hedge Funds”: HFRI Fund Weighted Composite Index TR, for “Commodities”: S&P GSCI TR, for “Emerging Market Stocks”: MSCI Emerging Markets Index USD. Treasuries, Gold, Global Investment Grade Bonds, Hedge Funds, Commodities and Emerging Market Stocks each have different risk and return profiles. Hedge fund investments involve special risks including, but not limited to, liquidity risks, foreign investment risks, higher fees and expenses, regulatory restrictions, loss of all or a significant portion of the investment, and volatility of returns due to leveraging. An investor should evaluate each of the above asset classes in the context of his or her investment objectives.
Why Hedge Funds with Blackstone
We invest in alternative investment strategies for leading institutional investors and sophisticated individuals, seeking attractive risk-adjusted returns to meet our clients’ investment goals.
Driving fundamental improvements in businesses over the long term
Real estate has historically offered current income to investors and may appreciate in value over time
An attractive alternative investment for investors looking for yield
Once a niche, secondary private equity has grown into an evolved asset class