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This Liquid Alt Fund Is on Our Radar

Jason Kephart, CFA

Jason Kephart: In 2015, Blackstone Alternative Multi-Strategy (BXMIX) flew under our radars like the Millennium Falcon fleeing from bounty hunters.

Not only was this fund one of the best-selling liquid alternative funds for the year, it was also one of the best performing. It's 3.8% return for the year outpaced 94% of all rivals and actually outperformed the S&P 500.

The fund is managed by the same team that runs Blackstone's flagship hedge fund, and four of its five highest-conviction managers are also included in the mutual fund. The fifth manager runs a strategy that's too illiquid to fit into a 1940 Act fund. That's why it's not included.

One area of concern for the fund is its high fees. The fund charges 2.40%, which is higher than almost all other multialternative funds. Now, that fee should come down if the fund continues to grow and hits further fee breakpoints.

However, given its short track record, it might be best to keep this fund on your radar as well.