Blackstone’s Biggest Hedge Fund Delivers 12% 2025 Gain
Synopsis
Blackstone's largest hedge fund platform, Absolute Return Composite (AR), returned nearly 12% in 2025, beating HFRX's 7.1%, with Q4 at 3.9% amid $1.2T AUM, ahead of Thursday's results. Blackstone’s biggest hedge fund unit had…
Blackstone's largest hedge fund platform, Absolute Return Composite (AR), returned nearly 12% in 2025, beating HFRX's 7.1%, with Q4 at 3.9% amid $1.2T AUM, ahead of Thursday's results.
Blackstone’s biggest hedge fund unit had another strong year. Its Absolute Return Composite fund generated a 12% net gain in 2025, well ahead of the broader hedge fund industry, according to people familiar with the performance.
The firm’s flagship BXMA fund, which manages most of its $93 billion in assets, added 3.9% after fees in the final quarter of the year, outperforming its benchmark. That result extended a winning streak that has now lasted 33 straight months, helped by positive returns from equities, systematic trading, credit and macro positions.
The business is run by Joe Dowling and David Ben-Ur, who have overseen its shift away from a traditional fund-of-funds approach toward making direct investments.
Performance Drivers and Consistency
Equities and systematic trading helped power returns, alongside positive gains in credit and macro positions. The fund’s nearly three-year run of positive performance reflects changes to asset allocation and risk metrics following leadership changes at the firm.
The firm is set to report its fourth-quarter and full-year earnings on Thursday, when it is expected to provide more details on the BXMA business.
Strategic Evolution Boosts Appeal
Blackstone has rebranded the business as Multi-Asset Investing. The move comes as institutional investors increasingly seek more stable returns from large alternative managers during choppy markets.
Within the platform, Absolute Return Composite remains the dominant strategy by assets.
Implications for Investors
Investors such as pension funds and university endowments are being drawn to managers that can deliver steady results. Multi-strategy platforms are increasingly blending hedge fund-style trading with longer-term alternative investments in an effort to smooth returns during volatile markets.
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