Hedge Funds

Blackstone’s second seeding fund starts with a sputter

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All seven managers selected by $2.4 billion Blackstone Strategic Alliance II fell in its first calendar year.

   Blackstone's second seeding fund starts with a sputter
  “True stars don’t cut deals for $50 million."
Blackstone vice chairman J. Tomilson Hill (Photo: Bloomberg)

  
With $2.4 billion in capital available to new managers, the Blackstone Group is the world’s largest financier of hedge fund startups, and the private equity giant had its pick of new managers to back when it began its second seeding fund in late 2010. But the fund fell 8% in 2011 as all seven of its hedge fund picks lost