Hedge fund solutions

Why BlackRock for hedge fund solutions?

BlackRock Alternative Advisors, BlackRock’s dedicated hedge fund solutions provider, has been evaluating and investing in hedge funds since 1995.

BAA’s expertise extends across the universe of hedge fund managers and strategies, as well as hedge fund-sponsored co-investments.

Unique sources of information
Unique sources of information
BAA actively leverages insights of the firm’s substantial network of traders, legal and operational professionals globally, to further inform investment decisions.
World class risk management
World class risk management
The Aladdin® portfolio platform and proprietary risk system Viewpoint help BAA measure, understand and manage risks within a hedge fund portfolio.
Access to best-in-class hedge funds
Access to best-in-class hedge funds
Significant experience in early manager identification, demonstrated access to unique investment opportunities and a pioneer in hedge fund co-investments.

While proprietary technology platforms may help manage risk, risk cannot be eliminated.


Market Opportunity

Hedge funds are important in investors’ portfolios because they can serve in a variety of different roles. But in all cases, the right hedge funds should provide alpha or idiosyncratic sources of return and risk that are generally uncorrelated to traditional markets like equities and fixed income.

market opportunity chart

Source: BlackRock. For illustrative purpose only.

Investment solutions

What is a hedge fund solution?
Investors allocate to hedge funds for many reasons but understanding and managing risk in the ever-evolving universe of more than 8,000 hedge funds requires significant expertise, time and effort. Furthermore, one size does not fit all; investors allocate to hedge funds for different purposes and have varied levels of resources and expertise. A hedge fund solutions provider helps an investor address the inherent complexities and may act as an extension of staff to help an investor develop the optimal portfolio of hedge funds, while offering the desired level of control and transparency.

A diverse offering
BAA offers a range of products and services, which provides clients with access to unique investment opportunities, thematic investments, and meaningfully negotiated terms (e.g., discounted fees, structural improvements, transparency, etc.). BAA serves as an extension of a client’s investment team by providing unique insights, while implementing exposures that complement directly held hedge fund investments.

hedge fund solution tab2

Source: BlackRock. For illustrative purpose only.

  • Bespoke solutions with tailored investment parameters, customized governance models and a partnership centered on transparent communication.

  • Multi-manager strategies that provide diversified exposure to hedge fund strategies.

  • Direct security investments sourced from hedge fund relationships and the broader BlackRock organization.

Investment philosophy

Our disciplined investment approach is founded on four core principles. We seek to:

  • Fundamentally understand an investment manager’s strategy
  • Align incentives between the investment manager and the investor
  • Exercise independent judgment rather than “following the herd”
  • Focus on market inefficiencies as a core source of risk and return


Investment process

hedge fund solution image

Source: BlackRock as of 1 July 2022. Current investment process is subject to change and based on market conditions, managers’ opinions and other factors.

Meet our team

BAA has substantial experience investing across market cycles and a significant global presence, with offices in Seattle, New York, London, Tokyo and Hong Kong.

Mark Woolley
Chief Investment Officer

Contact our institutional team to learn more about private markets

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