Blackstone Makes Multiple Commodity Bets

Chidem Kurdas

Blackstone Group raised $2.4 billion for its second hedge fund seeding vehicle and started to deploy the capital in the past months. So far, $200 million has gone to two managers. One of them is a commodity manager. 

One can’t read too much into that one selection. Blackstone is likely to spread the $2.4 billion among a wide variety of strategies. The other fund that recently received seed capital is in long/short equity.

But this commodity hedge fund investment is part of a multi-pronged move into commodities.  Blackstone’s private equity and fund of hedge funds portfolios contain other commodity-related investments as well. This month the private equity arm announced a commitment to invest as much as $1 billion to acquire and develop shale gas and oil resources via  Alta Energy Partners. Oil and natural gas explorer Alta Resources provides the expertise.  

The fund of funds business is the largest worldwide and retains a lead over competitors.  It continued to gain market share with a net inflow of $3.1 billion in the first quarter, Blackstone chief executive Stephen Schwarzman said at a recent conference call. The quarter’s inflow is equal to inflows in the whole of 2010, he said.

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2 Responses to “Blackstone Makes Multiple Commodity Bets”

  1. Road Less Traveled Financial Stocks « HedgeFundSmarts Says:

    […] diversify away from the financial mainstays. While its private equity business catches attention, the hedge fund business has grown […]

  2. Blackstone Energy Bets Going Strong « HedgeFundSmarts Says:

    […] is another instance of Blackstone’s multi-pronged approach to commodities investing, using private equity, hedge fund, even distressed and credit – as with Saratoga– […]

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