ALTERNATIVES

Hedge fund solutions

Why BlackRock for hedge fund solutions?

BlackRock Alternative Advisors (BAA), BlackRock’s dedicated hedge fund solutions provider, has been evaluating and investing in hedge funds for nearly 25 years. 

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

BlackRock edge
BlackRock edge
BAA actively leverages insights of the firm’s substantial network of traders, legal and operational professionals globally, to further inform investment decisions.
Risk management expert
Risk management expert
The Aladdin® portfolio platform and proprietary risk system Viewpoint help BAA measure, understand and manage risks within a hedge fund portfolio.
Investment innovation
Investment innovation
Significant experience in early manager identification, demonstrated access to unique investment opportunities and a pioneer in hedge fund co-investments.
Paragraph-2
Paragraph-3,Paragraph-4,Accordion-1
Paragraph-5
Paragraph-6,Bio-1

Market Opportunity

Institutional investors often allocate to hedge funds to diversify portfolio risk, while seeking to generate uncorrelated sources of return.

When executed effectively, an optimal hedge fund portfolio can provide idiosyncratic sources of return and risk, while minimizing exposure to broad market risks.

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 tab3

Source: BlackRock. For illustrative purpose only.

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.

hedge fund solution tab4

Source: BlackRock as of Sept. 5, 2019. For illustrative purpose only.

Leadership
David Matter
Co-Chief Investment Officer
Read biography
Mark Woolley
Co-Chief Investment Officer
Read biography