Blackstone to close multi-strategy fund after assets drop nearly 90%

© Reuters. FILE PHOTO: Signage is seen exterior the Blackstone Group headquarters in New York Metropolis, U.S., January 18, 2023. REUTERS/Jeenah Moon

(Reuters) – Blackstone (NYSE:) plans to shut a fund that exposes traders to quite a lot of hedge funds and buying and selling methods after belongings fell virtually 90% in 4 years, the Monetary Occasions reported on Tuesday.

The US.-based asset supervisor informed traders that Blackstone Diversified Multi-Technique fund will shut on the finish of the 12 months, the newspaper reported, citing Blackstone.

The fund reported a 2% decline in returns from the start of 2020 till the tip of final month, the report mentioned, quoting investor paperwork.

“It is a small, legacy fund. We’re in talks with shoppers to maneuver their capital to newer methods that provide larger flexibility than the present construction permits,” FT quoted Blackstone as saying.

Blackstone didn’t instantly reply to a Reuters request for remark.