Hedge Funds
We are a leading global hedge fund investment firm. We are committed to leveraging our global expertise and business network to generate substantial returns for investors in any market environment.
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Investor Capital Under Management
$315B
Global Hedge Fund Portfolio Value1
$618B
Note: All figures as of March 31, 2026, unless otherwise indicated.
1. As of December 31, 2025.
What is a hedge fund?
A hedge fund is a private investment vehicle managed by professional fund managers. It employs highly flexible investment strategies, pursuing absolute returns by taking on higher risks. Hedge funds profit from various market conditions, whether rising or falling, using derivatives, short selling mechanisms, and leveraged borrowing. They primarily target institutional investors and high-net-worth individuals.
Operating Principles
Hedge Risk: Purchase multiple assets to offset potential market downturn risk.
Short Selling: Not only bet on stock price increases, but also profit when stock prices fall.
Using Leverage: Borrowing funds to amplify investment size and potential returns.
Derivatives: Trading using complex instruments such as futures and options.
HEDGE FUND FRAMEWORK
Core Investment Strategies, Fee Structure and Key Differences
The following framework summarizes core hedge fund strategies, the typical “2/20” fee model, and differences versus mutual funds.
Long-Short Equity Strategy
Buy stocks you believe in while shorting stocks you believe in.
Global Macro Strategy
Bet on macroeconomic trends such as interest rates, exchange rates, or commodities.
Event-Driven Strategy
Utilize special events such as mergers, acquisitions, restructurings, or bankruptcies for arbitrage.
Quantitative Strategy
Use complex mathematical models and computer algorithms to find trading opportunities.
Fee Structure
Management Fee: Approximately 2%, used to cover operating costs, payable regardless of profit or loss.
Performance Fee: Based on the hedging ratio set by the investor. For example, if the ratio is 30%, the performance fee is 30% of total profits; if losses occur, the institution also bears 30% of the investor's total investment.
Differences from Mutual Funds
Hedge funds are generally not subject to strict regulatory restrictions, can invest in less liquid assets, and are accessible to the general public.
Spotlight Investment Areas: Data Centers
Blackstone is the largest data center provider in the world.
Interviewing AI on Blackstone’s Investments in Data Centers
Interviewing AI on Blackstone’s Investments in Data Centers
Head of Digital Infrastructure for Blackstone Real Estate Mike Forman and Chief Executive Officer of Blackstone Infrastructure Strategies Greg Blank discuss our global data center strategy with a special guest — AI.
CAREER OPPORTUNITIES
Take the next step in your real estate career by exploring opportunities at Blackstone and our portfolio companies.
Note: Information in “Our RE Portfolio Companies” under “Career Opportunities” is being provided by Blackstone for informational purposes only. All hiring decisions are made by each applicable portfolio company.
LEARN MORE ABOUT PRIVATE REAL ESTATE Investing
Essentials of Private Real Estate
Essentials of Private Real Estate
Gain an understanding of the potential benefits and considerations of private real estate, including inflation hedging and lower volatility relative to public REITS.
News & Insights
Decoding the Real Estate Cycle
Nadeem Meghji, Global Head of Real Estate, spoke to investors at Blackstone’s 2026 Private Capital Group Summit about why now—during what we see as the early stages of a real estate recovery driven by improving debt markets and declining new construction—is a compelling time to invest in the asset class.
Why Should You Care About Data Centers?
Sean Klimczak, Blackstone’s Global Head of Infrastructure, and Nadeem Meghji, Blackstone’s Global Head of Real Estate, discuss AI’s explosive growth and how it’s driving unprecedented investment opportunities in data centers and power.
Real Estate Enters the Next Phase of the Cycle
Global Head of Real Estate Nadeem Meghji explains how commercial real estate is moving into a new part of the cycle, creating what we believe is one of the most attractive entry points for investors in recent years.
While Blackstone believes sustainability factors can enhance long-term value, Blackstone does not pursue a sustainability-based investment strategy or limit its investments to those that meet specific sustainability criteria or standards, except with
respect to products or strategies that are explicitly designated as doing so in their offering documents or other applicable governing documents. Any such considerations do not qualify Blackstone’s objectives to maximize risk-adjusted returns.
