Blackstone Group is quietly laying plans to start a hedge fund that will make big, risky bets, an effort it hopes will eventually rival some of the largest firms in the business, according to people familiar with the plans.
MarketWatch reports that the private-equity firm will fund several teams of traders with hundreds of millions of dollars to place a relatively small number of large, highly concentrated wagers, the people said. The strategy is notable now as many hedge funds are shying away from making such outsize bets.
Combined, the teams’ investments will form a multistrategy hedge fund to be pitched to wealthy clients. Blackstone is confident the firm can hedge the overall risks, according to people familiar with the firm’s plans.
Blackstone is aiming to rival powerhouses such as Millennium Management LLC, which has $23bn under management; Citadel, which has $22bn; and the $45bn Och-Ziff Capital Management in New York.
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