Blackstone reshuffles roster on $5bn liquid alts fund
Private equity giant Blackstone has dropped FT AlphaParity and added H2O AM LLP as subadvisors on the $5 billion Blackstone Alternative Multi-Strategy fund, according to a Securities and Exchange Commission (SEC) filing.
London-based H2O AM will serve as a discretionary subadvisor to the fund and work on macro strategies. Backed by Natixis Asset Management, the boutique specializes in global fixed income and global macro multi-strategy and had $14.6 billion in assets under management as of June 30.
AlphaParity, a macro-focused quantitative investment firm with offices in New York City and London, had $500 million as of December 31 2016, in custom portfolio solutions for pension funds, foundations, family offices and alternative asset managers. The firm was acquired by Franklin Templeton Solutions in February this year/ Terms of the transaction were not disclosed.
The multi-strategy fund, managed by Blackstone's Alberto Santulin, Stephen Sullens, Gideon Berger, Robert Jordan, David Mehenny, Ian Morris and Min Htoo, currently has a total of 19 subadvisors, they are:
- Bayview Asset Management
- Boussard & Gavaudan Investment Management
- Caspian Capital
- Cerberus Sub-Advisory I
- Chatham Asset Management
- D. E. Shaw Investment Management
- Emso Asset Management
- Good Hill Partners
- GS Investment Strategies
- GSA Capital Partners
- H2O AM
- HealthCor Management
- IPM Informed Portfolio Management
- Magnetar Asset Management
- Nephila Capital
- Sorin Capital Management
- Two Sigma Advisers
- Waterfall Asset Management
- Gracian Capital
The Blackstone Alternative Multi-Strategy fund, launched in June 2014, has returned 12.1% over the past three years until the end of July, ranking 7th out of the 40 funds tracked by Citywire in the Multi Strategy category.
The fund added GSA Capital Partners as a discretionary subadvisor and Gracian Capital as a non-discretionary subadvisor in June.
A Blackstone spokeswoman declined to comment on the changes.
Rafferty caps expenses
Rafferty Asset Management, the advisor to the Derexion family of funds and ETFs, has agreed to cap expenses on 20 funds effective September 1, according to a SEC filing.
Rafferty has contractually agreed to cap all or a portion of its management fee for these funds and will reimburse the funds if total annual fund operating expenses exceed a certain percentage. The percentages range from 1.05% to 1.35% depending on the fund.
These affected funds are:
- Direxion Hilton Tactical Income
- Direxion Monthly S&P 500 Bull 2X
- Direxion Monthly S&P 500 Bear 2X
- Direxion Monthly NASDAQ-100® Bull 2X
- Direxion Monthly Small Cap Bull 2X
- Direxion Monthly Small Cap Bear 2X
- Direxion Monthly Emerging Markets Bull 2X
- Direxion Monthly 7-10 Year Treasury Bull 2X
- Direxion Monthly 7-10 Year Treasury Bear 2X
- Direxion Monthly NASDAQ Biotechnology Bull 2X
- Direxion Monthly MSCI Europe Bull 2X
- Direxion Monthly MSCI EAFE Bull 2X
- Direxion Monthly High Yield Bull 1.2X
- Direxion Monthly 25+ Year Treasury Bull 1.35X
- Direxion Monthly 25+ Year Treasury Bear 1.35X
- Direxion Monthly MSCI Europe Bear 1.25X
- Direxion Monthly NASDAQ Biotechnology Bear 1.25X
- Direxion Monthly NASDAQ-100 Bull 1.25X
- Direxion Monthly NASDAQ-100 Bear 1.25X
- Direxion Monthly MSCI EAFE Bear 1.25X
A Rafferty spokesman confirmed the content of the filing and said that as a result of the changes, no investors would ever pay more than the stated net expense ratio, as opposed to the gross expense ratio.
Manning & Napier is to liquidate the Class S and I shares of the $99.5 million Manning & Napier Emerging Markets Series fund, according to a SEC filing.
Launched in 2011 and managed by Christian A. Andreach and Brian Ecker, the fund has suffered poor performance, returning -11.9% over the past three years until the end of July and ranks 176th out of the 184 Emerging Markets funds tracked by Citywire.
The series will no longer accept automatic investments from existing shareholders on October 6 and redeem all of its outstanding shares on or about November 10.
Separately, the iShares iBonds Sep 2017 Term Muni Bond ETF has been liquidated on September 8, according to another regulatory filing.