Blackstone Alternative Alpha Fund registers $500 million of shares

By Toni Weeks

San Diego, Feb. 22 - The Blackstone Alternative Alpha Fund has registered $500 million of shares in a 497 filing with the Securities and Exchange Commission.

The recently formed trust's investment objective is to earn long-term risk-adjusted returns that are attractive as compared to those of traditional public equity and fixed-income markets. The fund will invest substantially all of its assets in the Blackstone Alternative Alpha Master Fund, which in turn will invest its assets directly or indirectly in investment partnerships, managed funds, securities and other assets held in segregated accounts and other investment funds, which may include hedge funds managed by outside parties.

Through its investment in its Master Fund and the Master Fund's investment in investment funds, the fund may be considered a "fund of hedge funds," the filing noted.

Shares will be offered in the initial offering at $1,000 per share and are expected to be offered on a continuous basis at their net asset value after that. The initial offering period will expire April 2.

The maximum sales load will run 3%. Shareholders may also pay a 2% repurchase fee, which applies to shares sold in a repurchase offer that has a tender valuation date within the first year following the original issue date.

The management fee will be 1.25%. Including other expenses and fees and a fee waiver agreement, total annual expenses are expected to be 8.89%. The fee waiver agreement expires March 31, 2015.

New York-based Blackstone Alternative Asset Management LP will serve as the investment manager.

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