© Reuters.
Blackstone (NYSE , the global investment firm, is closing its Diversified Multi-Strategy fund following a significant drop in its assets, from £1.7 billion in December 2019 to £192 million on October 27 .with a loss of around 2% since January 2020 compared to an average hedge fund gain of around 21%, according to data from HFR and Kepler Absolute Hedge.
The asset reduction reflects broader challenges within the industry. Sussex Partners noted that multi-strategy UCITS funds are facing difficult times. Across the sector, UCIT-regulated mutual funds have seen their assets shrink by 30% over the past year.
Blackstone’s fund included investments managed by a variety of firms, including Two Sigma, Bayview, Emso, Seiga Asset Management and Magnetar Asset Management. The closure of this fund marks a retreat from a segment that has struggled to keep pace with the gains of the broader hedge fund market.
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