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Hedge Funds

Our liquid alternatives platform leverages extensive company and market access, deep market insights, and proprietary risk and quantitative analysis capabilities aiming to deliver differentiated alpha for our clients.
SITUATIONS - volatility

Why BlackRock for hedge funds?

Differentiated alpha

We build portfolios that seek to deliver idiosyncratic sources of returns that capitalize on market volatility and dispersion.

Diversifying

We build high breadth portfolios using a disciplined, methodical process with a distinct focus on taking compensated risks.

Defensiveness

We seek to deliver strategies with a clear understanding and delineation between alpha and beta return sources.

Investment skill at scale

At BlackRock, we empower our hedge fund investors to operate seamlessly at scale. We harness unparalleled expertise, global reach, and cutting-edge technology to deliver solutions across geographies, asset classes, and investment styles. Discover the advantages of investing at scale with Raffaele Savi, Global Head of BlackRock Systematic.

Transcript
Raffaele Savi: Something very interesting is happening to investment management. In the last 40 years, the largest managers have systematically, substantially outperformed smaller managers. And I think that the two reasons why that that's been true, one is the role of technology. So as investment processes are becoming more and more efficient at absorbing information and leveraging information and building systems that can scale and multiply the value of those insights, whether it's generative AI where these models are getting larger and larger, or whether it's technology firms where in the last 10 years, there's been the emergence of the trillion dollar market cap firm. The ability to do this at scale is an important advantage. Source: HFR. Larger managers are defined as those in the first quartile of HFR by AUM. As of August 31, 2024. For illustrative purposes only. The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results. Performance period is from July 31, 2004–July 31, 2024.
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Our hedge fund platform

BlackRock manages $76bn in hedge fund assets

Our 27+ year track record consists of $48 billion in direct hedge funds and $29 billion in hedge fund solutions

Dedication to rigor and consistency

Robust, repeatable, research-driven processes form the backbone of our investment teams

Commitment to client needs

We leverage the extensive expertise gained from our platform's scale to provide our clients with valuable insights and solutions

Powered, enabled and supported by BlackRock

Extensive trading, risk management, and capital markets resources enable our hedge fund managers to focus solely on generating alpha on behalf of our clients

Source

BlackRock, as of 12/31/2024

Investment strategies

Our hedge fund strategies combine our skill and scale to offer solutions across geographies, asset classes and styles.

Equities

At BlackRock, our long/short equity strategies are among our largest and most established hedge funds. Our market-neutral approach aims for absolute returns irrespective of market conditions.

Fixed income

Traditional fixed income investing has been centered on factor beta bets on both credit and duration. We build diversified, global fixed income multi-strategy hedge funds to deliver returns independent of traditional market betas.

Multi-asset

Our flagship macro and multi-strategy hedge funds utilize sub-strategies to seek idiosyncratic alpha across asset classes, global geographies, market structures, and investment horizons.

Event-driven

Our event-driven team uses the collective intelligence of the Blackrock platform to capitalize on the value gap arising from the misunderstood nature of transformative events.

Hedge fund solutions

Identifying and selecting the best hedge funds can be hard and labor intensive. HFS’s dedicated investment team has experience and expertise across multiple market cycles building successful hedge fund programs for our investors.

Investors

Our investors have an unrelenting focus on generating alpha for our clients. By leveraging diverse backgrounds and approaches, our experts collaborate with portfolio construction and risk management teams to develop strategies focused on consistent alpha generation, regardless of market conditions.

Hedge fund outlook 2025

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Insights

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How Machine Learning is Enhancing Macro Investing

Sep 29, 2025|
Systematic Investing

Discover how purpose-built machine learning is unlocking new alpha sources in macro investing—transforming sparse signals into global insights.

Global macro matters: smarter macro hedge fund allocations

Our latest research reveals why global macro hedge funds deserve a fresh look—and given the differentiated diversification benefits—can likely play a larger role in sophisticated portfolios.

SITUATIONS - community

Portable alpha strategies

Dec 31, 2024|
Systematic investing+3

Explore how portable alpha strategies can potentially increase returns by separating the beta and alpha components of a portfolio.

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