The Fund of Funds 50: A Tale of Two Tiers

The fund-of-hedge-fund industry has divided along size lines, with the biggest firms offering bespoke products and getting the lion’s share of new assets.

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Last August, in one fell swoop, New York–based Blackstone Alternative Asset Management opened the once-exclusive world of hedge fund investing to retail investors. BAAM, the world’s largest investor in hedge funds, introduced the Blackstone Alternative Multi-Manager Fund, an open-ended mutual fund, to offer daily liquidity to clients of Fidelity Investments’ Portfolio Advisory Service.

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