BlackRock Expands Product Lineup

Chidem Kurdas

The Alternative Advisors  arm of BlackRock will be managing a new fund of funds for the mass affluent market. The product targets an equity-like return but with less volatility and relatively low correlation to equities. The idea is to invest primarily with hedge funds outside the US and pick those that are not highly correlated to Standard & Poor’s 500 over the long run. 

Managing directors Edward Rzeszowski and Nicholas Sideratos are the portfolio managers. Both came to BlackRock with acquisitions. Mr. Rzeszowski was senior hedge fund analyst at Merrill Lynch Investment Managers, acquired by BlackRock in 2006. Mr. Sideratos was at Quellos Group, acquired by BlackRock in 2007.

The new fund is for accredited investors but has a relatively low minimum of $50,000. It will primarily go for well established fund managers that do not rely on only a few individuals but have a strong team.

BlackRock reportedly has $54 billion in hedge fund strategies.  This January chief executive Laurence Fink said that demand for alpha-return products is strong and the company continues to build in this area.

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One Response to “BlackRock Expands Product Lineup”

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