An alternative mutual fund for investors seeking diversification

Symbol:

Why Blackstone Alternative Multi‑Strategy Fund

A core alternative solution providing a diversified blend of alternative strategies and managers in a single daily liquid mutual fund.
John McCormick, Global Head of BAAM

John McCormick, Global Head of BAAM

Reasons to Invest

In pursuing its investment objective of capital appreciation, Blackstone Alternative Multi-Strategy Fund seeks to deliver:

Diversification1

Invests in a variety of alternative strategies in an effort to provide diversified exposures that are less dependent on market movements.

Volatility Mitigation1

Seeks to mitigate volatility and losses through exposure to diversifying assets.

Risk-Adjusted Returns1

Seeks to deliver steady growth with a focus on maximizing risk-adjusted returns over a full market cycle.

Why Blackstone?

Blackstone Alternative Asset Management (BAAM)2 has partnered with some of the world's leading investors since 1995

Position

World's largest discretionary investor in hedge funds3 with $74 billion in AUM4

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

Why Multi-Manager

Aims to ease the burden on financial advisors and investors of evaluating and allocating to multiple single-strategy funds


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 alternative strategies are combined in one solution. Given the complexity of many of these strategies, it is unlikely that a single manager has expertise across all of them.



Dynamic Allocation

Dynamic allocation allows Blackstone to rotate into more attractive sectors, strategies and managers as markets evolve.

Data as of ,
  • 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 allocations to funds managed by third-party asset managers, opportunistic trades and hedging. BAIA allocations are subject to change and BAIA's fees on directly managed assets are not reduced by a payment to a sub‐adviser.
  • Inactive sub-advisers are not currently managing any Fund assets. Allocations may change at any time without notice.

Portfolio Managers

Blackstone seeks to add value through top-down strategy selection and bottom-up manager evaluation
Gideon Berger

Sr. Managing Director

Raymond Chan

Managing Director

Min Htoo

Sr. Managing Director

Robert Jordan

Sr. Managing Director

Ian Morris

Sr. Managing Director

Alberto Santulin

Managing Director

Stephen Sullens

Sr. Managing Director

Why Alternative Strategies

Hedge fund exposures can help diversify traditional allocations to equities and fixed income
*Historical annualized returns represent annualized returns from January 1990, the inception of the HFRI Fund-Weighted Composite Index, through December 2019. Equity market declines were selected by identifying the two most recent instances when the MSCI World TR Index declined by more than 40%. Use of different time periods would yield different results. Alternatives are represented by the HFRI Fund-Weighted Composite Index. Alternatives and Equities (MSCI World TR Index) have different risk and return profiles. Equities are subject to market risk or the risk of loss due to adverse company and industry news, or general economic decline. Alternative investments involve special risks including but not limited to, liquidity risks, foreign investment risks, higher fees and expenses, regulatory restrictions, and loss of all or a significant portion of the investment, or volatility of returns due to leveraging, short-selling or other speculative practices. An investor should evaluate alternatives and equities in the context of his or her investment objectives. Performance shown is not representative of BXMIX or the performance of any Blackstone product. Past performance is no guarantee of future results. An investor cannot invest directly in an index.

Asset Allocation

A natural complement to a traditional allocation
Portfolio Without Alts
Portfolio With Alts

Portfolio Characteristics

BXMIX includes multiple alternative strategies and investment styles with the aim of capturing opportunities across asset classes and geographies
Portfolio Allocations
Exposures
Fixed Income
Data as of ,

Portfolio exposures in the table reflect exposures as of the date of this report. The Fund may shift allocations among strategies and sub‐strategies at any time. Accordingly, the exposures are presented for illustrative purposes only and should not be viewed as predictive of the ongoing composition of the Fund’s portfolio, which may change at any time.

Portfolio allocations exclude exposures to Fund level cash, hedging and expenses and are adjusted pro-rata to equal 100%. In the case of non-interest rate instruments, exposure data represents the delta adjusted market value. In the case of interest rate products, exposure data is represented by the 10-year equivalent instrument. Positions of unknown type (if any) are excluded from exposure data.

Literature and Multimedia Content

Fund Documents and Public Filings

Investor Material

Summary Prospectus
Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Annual Proxy Voting Report
SEC Filings
BAMSF Information Statement
2019 Year-End Distribution
Form 5500

Corporate Governance

Privacy Notice
Whistleblower Policy
Audit Committee
Nominating Committee Charter

Important Risks

This page is not an offer to sell the Fund’s securities and is not soliciting an offer to buy the Fund’s securities. All investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. All investors are urged to carefully read the prospectus and summary prospectus in their entirety before investing.

Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. All returns include dividend and capital gain distributions. The price information contained herein is estimated and unaudited and subject to change.

There can be no assurance the Fund will achieve its objectives or avoid significant losses. You can receive additional information about the Fund by calling 855-890-7725 or by contacting your BAAM representative.

An investment in BXMIX, 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 investments. BXMIX’s investments involve special risks including, but not limited to, loss of all or a significant portion of the investment due to leveraging, short-selling, or other speculative practices, lack of liquidity and volatility of returns. The following is a summary description of certain additional principal risks of investing in BXMIX: Allocation Risk – Blackstone’s judgment about the attractiveness, value or market trends affecting a particular asset class, investment style, sub-adviser or security may be incorrect and this may have a negative impact upon performance. Derivatives Risk – the use of derivatives involves the risk that their value may not move as expected relative to the value of the relevant underlying assets, rates, or indices. Derivatives can be subject to counterparty credit risk and may entail investment exposure greater than their notional amount. Distressed Securities Risk - investments in securities of business enterprises involved in workouts, liquidations, reorganizations, bankruptcies and similar situations involve a high degree of risk of loss since there is typically substantial uncertainty concerning the outcome of such situations. Event-Driven Trading Risk – involves the risk that the specific event identified may not occur as anticipated and that this may have a negative impact upon the market price of the securities involved. Foreign Investments/ Emerging Markets Risk - involves special risks caused by foreign political, social and economic factors, including exposure to currency fluctuations, less liquidity, less developed and less efficient trading markets, political instability and less developed legal and auditing standards. High Portfolio Turnover Risk - active trading of securities can increase transaction costs (thus lowering performance) and taxable distributions. Model and Technology Risk – involves the risk that model-based strategies, data gathering systems, order execution and trade allocation systems and risk management systems may not be successful on an ongoing basis or could contains errors, omissions, imperfections or malfunctions. Multi-Manager Risk - managers may make investment decisions which conflict with each other and as a result, the Fund could incur transaction costs without accomplishing any net investment result. Leverage Risk – borrowing money or engaging in transactions that create investment leverage can produce volatility and may exaggerate changes in the net asset value of Fund shares. Conflicts of Interest Risk: 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 Statement of Additional Information, 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 The Blackstone Group Inc. or the relevant Sub-Adviser and redemptions from an affiliate (or terminating such entity as a service provider) would be detrimental to The Blackstone Group Inc. or the relevant Sub-Adviser. For example:
    • 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 The Blackstone Group Inc., serves as a Sub-Advisor Sub-Adviser. BRESSA invests primarily in liquid, commercial and residential real estate-related debt instruments.
    • GSO / Blackstone Debt Funds Management LLC (“GSO DFM”), an affiliate of BAIA and an indirect wholly‐owned subsidiary of The Blackstone Group Inc., serves as a Sub‐Adviser. GSO DFM 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 foregoing information has not been provided in a fiduciary capacity under ERISA, and it is not intended to be, and should not be considered as, impartial investment advice. If you are an individual retirement investor, contact your financial advisor or other fiduciary unrelated to BAIA about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances.

  • There can be no assurance that the Fund will achieve its goals or avoid 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 BXMIX, shares employees, facilities and processes with BAAM.
  • Source: InvestHedge Billion Dollar Club (as of December 31, 2019) based on AUM.
  • AUM as of 3/3/2020, estimated and unaudited. AUM includes committed but uncalled capital.

Important Disclosures Regarding Index Comparisons: Indices are provided for illustrative purposes only and have not been selected to represent benchmarks for the Fund, but rather are disclosed to allow for comparison of the Fund’s performance to that of well-known and widely recognized indices. The indices may include holdings that are substantially different than investments held by the Fund and do not reflect the strategy of the Fund. Comparisons to indices have limitations because indices have risk profiles, volatility, asset composition and other material characteristics that may differ from the Fund. The indices do not reflect the deduction of fees or expenses and you cannot invest directly into an index. In the case of equity indices, performance of the indices reflects the reinvestment of dividends. Index data is obtained from unaffiliated third parties and is subject to subsequent adjustments. Blackstone makes no assurances as to the accuracy or completeness thereof.

Market indices obtained through Bloomberg, HFR Asset Management, MSCI and Morngingstar, as applicable. Bloomberg Barclays Global Aggregate Bond Index: a flagship measure of global investment grade debt from twenty‐four local currency markets. This multi‐currency benchmark includes treasury, government‐related, corporate and securitized fixed‐rate bonds from both developed and emerging markets issuers. 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 falling within four principal strategies: equity hedge, event driven, macro/CTA, and relative value arbitrage. Strategies are asset weighted based on the distribution of assets in the hedge fund industry. MSCI World TR Index: a market capitalization weighted index designed to provide a broad measure of large and mid‐cap equity performance across 23 developed markets countries. Morningstar Multialternative Category: represents the average performance of mutual funds categorized as “multialternative” funds by Morningstar, Inc. These funds use a combination of alternative strategies such as taking long and short positions in equity and debt, trading futures, or using convertible arbitrage, among others.

Important Disclosures Regarding Exposure: Exposure data presented herein does not consider the impact of delta on option positions (unless noted otherwise). Instead, exposures represent the market value of each underlying instrument. Positions of unknown type (if any) are excluded from exposure data. There is no attempt in this report to differentiate between or adjust for shorter versus longer duration rates trades. Instead, they are shown only by market value of exposure. Given that exposure data is based on fund holdings, it excludes unsettled trades. Position level data is obtained from the Fund’s administrator. Blackstone does not guarantee the accuracy of such data.

Prepared by Blackstone Advisory Partners L.P., a member of FINRA and an affiliate of Blackstone Alternative Investment Advisors LLC, the investment adviser of the Fund.