Blackstone to set up own hedge fund

Blackstone, today’s largest investor in hedge funds already, is going to manage an own hedge fund for the first time.

According to Bloomberg, Blackstone is employing three traders to set up an own hedge fund. For one and a half year, Blackstone is planning to create this team and was taking to numerous traders about the strategy of the fund.

 The hedge fund will speculate on the equity market with about $500 million invested by clients and borrowed from banks.

 Previously Blackstone was only redirecting investor’s money into hedge funds or was a shareholder of hedge fund companies. This hedge fund is going to be the first that is directly managed by Blackstone.

Blackstone expanded investments in hedge funds already starting with $2 billion in 2000 and reaching about $58 billion by now.