Blackstone's BXMA Defies Volatility with 2.6% Q1 Gain: A Beacon in Uncertain Markets

Blackstone’s alternatives unit, Blackstone Multi-Asset Investing (BXMA), delivered a 2.6% gross return in Q1 2025, maintaining its status as a pillar of stability amid market turbulence. This performance, which marked BXMA’s 20th consecutive quarter of positive returns in its flagship strategy, underscores the unit’s ability to navigate challenges such as U.S. tariff concerns, rising unemployment, and recession risks.

Performance Resilience Amid Volatility

BXMA’s Q1 results outperformed the HFRX Global Hedge Fund Index, which posted a meager 0.53% return over the same period. Over the trailing 12 months, BXMA’s composite returned 11%, nearly doubling the average hedge fund’s 5.3% return in 2024. This consistency has attracted capital, with BXMA’s assets under management (AUM) surging to $88 billion—a 12% year-over-year increase driven by $3.4 billion in net inflows.

Strategic Evolution Fuels Growth

Under Joe Dowling’s leadership, BXMA has transitioned from a traditional “fund of hedge funds” model to a multi-asset approach, expanding into infrastructure, real estate, private credit, and life sciences. This shift has diversified risk and aligned BXMA with secular growth trends. For example:
- Infrastructure AUM grew 36% year-over-year to $60 billion, with the VIP strategy delivering 17% annualized net returns since inception.
- Private credit now manages $465 billion, including a $5 billion infrastructure financing deal for Rogers Communications and a $3.5 billion transaction for EQT Corp.

Blackstone’s Broader Momentum

BXMA’s success is part of a broader $1.2 trillion AUM surge for Blackstone, fueled by its $177 billion in dry powder and strategic partnerships like its alliance with Wellington and Vanguard. CEO Steve Schwarzman emphasized the firm’s “best work” in volatile markets, citing long-term, illiquid assets as a shield against short-term swings.

Key Risks and Mitigation

While tariffs and economic uncertainty pose headwinds, Blackstone’s diversification—spanning 80+ investment strategies—and $237 billion in insurance-linked AUM provide a buffer. Management also highlighted non-volatile sectors like private credit, which offers 200 basis points of yield advantage over liquid credits, as a key growth driver.

Conclusion: BXMA’s Position as a Growth Catalyst

BXMA’s Q1 performance reaffirms its role as Blackstone’s growth engine. With $88 billion in AUM, a 20-quarter winning streak, and strategic bets on infrastructure and private credit—sectors outperforming public benchmarks—the unit is well-positioned to capitalize on secular trends.

Crucially, BXMA’s resilience isn’t just about returns: its multi-asset model and $1.2 trillion firm backing insulate it from market volatility. As Steve Schwarzman noted, “We do some of our best work in times of volatility,” and BXMA’s results prove it.

Investors seeking stability in uncertain times would do well to look to Blackstone’s alternatives unit—a testament to disciplined strategy and long-term vision.