http://dealbook.nytimes.com/2013/01/11/client-redemptions-loom-for-sac-capital/
It said Blackstone is one of the largest outside investors. This might be a stupid question, but if I’m an investor in Blackstone, why the hell I let Blackstone invests in SAC, when in fact I can probabaly invest in SAC directly (assuming I have $$$). In other other word, why do I pay 2/20 to Blackstone and Blackstone pays 2/50 to SAC with my money?
Or I guess Blackstone also has a FOF business…
I think this means that Blackstone, the company, has money in SAC. So, Blackstone shareholders are invested in SAC. The sharesholders are not the same as Blackstone clients who own Blackstone funds.
Interesting considering SAC is hemorrhaging money and the SEC would love nothing more than to put Cohen behind bars.
http://finance.yahoo.com/news/sac-bracing-big-exodus-funds-071600406.html
Because back in the old days when SAC wasn’t a dog, you have to beg them to give them money. Blackstone is one way to “access their talents”.
Btw, Blackstone doesn’t charge 2/20…if so, you’ve been robbed.