Custom Hedge Fund Solutions
BlackRock Alternative Advisors (BAA) has managed traditional funds of hedge funds portfolios and provided custom hedge fund solutions for more than 15 years. We work with investors who seek alternatives to the risks found in traditional equity or fixed income portfolios. Our dedicated and experienced team is empowered by BlackRock’s infrastructure and global reach.
Custom solutions, which can include customized portfolios and advisory services, are tailored to an investor’s particular objectives and constraints. Custom portfolios can serve as a core hedge fund allocation or as a complement to direct hedge fund investments. We assess an investor’s overall objectives as a part of our solutions-based approach to developing client portfolios.
We provide tailored solutions in three primary categories:
- Investment guidelines and portfolio exposures: We work with clients to understand their specific challenges and objectives to develop investment guidelines. These can be designed to:
- Emphasize or de-emphasize specific hedge fund strategies or opportunities
- Address specific liquidity needs
- Provide diversified or concentrated exposure
- Restrict certain types of investments
- Portfolio implementation: We work with investors to develop an appropriate implementation model, offering both discretionary and advisory services.
- Portfolio insight: We provide our clients detailed reporting on their portfolio investments and access to investment professionals
Why choose BlackRock?
- Beneficial structure: We offer the resources of a global asset management firm combined with the agility and autonomy of a distinct business focused on hedge fund opportunities.
- Aligned incentives: We make significant investments in BAA funds alongside our clients, which supports a strong alignment of interests.
- Diverse capabilities: We source and evaluate both traditional and niche hedge funds and hedge fund-related investments.
- Disciplined risk management: We aim for every risk position to be deliberate and appropriately scaled. We seek to position fund portfolios in a manner we believe balances risk and return objectives.
Structured and negotiated terms: We seek to leverage our size, experience and position in the industry to negotiate favorable terms and structures with hedge fund managers.