Hedge Funds

Hedge funds can be an effective diversfication tool for investors.

Understanding Hedge Funds

Potentially 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.

Source: Morningstar. See indices information and important disclosures below.

Providing Hard to Find Diversification**

Over time, non-correlated asset classes are becoming increasingly difficult to find.

Source: Morningstar. See indices information and important disclosures below.

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.

* Hedge Funds: HFRI Fund Weighted Composite Index TR; U.S. Equities: S&P 500 Index TR; Real Estate: DJ US Select REIT Index TR; High Yield Bonds: Barclays US Corporate High Yield Index TR; Global Equities: MSCI World Index Gross TR USD; U.S. Fixed Income: Barclays US Corporate High Yield Index TR; Global Fixed Income: Barclays Global Aggregate Bond Index TR USD; Commodities: S&P GSCI Index TR.

** “1999-2008” data covers the period January 1, 1999 – December 31, 2008. “2009-2019” data covers the period January 1, 2009 – December 31, 2019. For “Treasuries” we use Barclays U.S. Treasury Intermediate Index TR, for “Gold”: S&P GSCI Gold Index TR, for “Global Investment Grade Bonds”: 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.

Private Equity

Driving fundamental improvements in businesses over the long term

Real Estate

Real estate has historically offered current income to investors and may appreciate in value over time

Credit

An attractive alternative investment for investors looking for yield

Secondaries

Once a niche, secondary private equity has grown into an evolved asset class


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