New York (HedgeCo.Net) – Hedge fund giant Blackstone Group, along with partners Fidelity Investments, said today that they, “Aim to expand their reach to retail clients and rid the hedge fund market of its perceived exclusivity,” with the launch of their Alternative Multi-Manager Fund.
The new mutual fund of hedge funds was launched last month and has various sub-advisors. Fidelity’s Portfolio Advisory Service – which consists of funds with a minimum value of $50,000 - has already invested nearly $1bn in the fund.
The new fund, managed by Blackstone’s hedge fund team, will have a net expense ratio of 2.40 percent – more than double the cost of a traditional mutual fund.
“Despite the high costs, the Alternative Multi-Manager Fund allows retail clients access to hedge fund components usually restricted to financial experts, such as troubled debt, commodity speculation and shorting stocks.” Blackstone said.
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