Blackstone’s alternatives unit BXMA reports 2.3% gain in Q1

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By Svea Herbst-Bayliss

NEW YORK (Reuters) -Blackstone Group’s multi-asset investing BXMA unit, the world’s largest investor in hedge funds, posted a 2.3% return after fees in the first quarter, handily outpacing the HFRX Global Hedge Fund Index 0.53% return.

The numbers, released on Thursday when Blackstone reported first-quarter earnings, are noteworthy because they came during a period of great market volatility as investors fretted about the prospect of U.S. tariffs, rising unemployment, and the chance of a recession.

For the full year 2024 BXMA, which oversees $88 billion in assets for pension funds, sovereign wealth funds and other big institutions, returned 12% after fees, more than double the average hedge fund’s 5.3% return. Last year’s return was also nearly double the 6.9% gain BXMA reported in 2023.

BXMA, headed by Joe Dowling, reported its 20th straight quarter of positive composite performance in its largest strategy, Blackstone said.

During the first quarter, BXMA assets rose by 12% to $88 billion, including $3.4 billion of inflows.

Dowling, who joined Blackstone from Brown University’s endowment fund in 2021, has overhauled the portfolio by shifting where assets are allocated and improving its risk metrics. As he reordered the business to invest more broadly in alternatives instead of primarily allocating capital in a fund of hedge funds, the unit was renamed Blackstone Multi-Asset Investing from Blackstone Alternative Asset Management.

The BXMA unit invests in asset classes in public and private markets, including in alternatives like hedge funds.

(Reporting by Svea Herbst-Bayliss; Editing by Diane Craft)