Professor Arthur Goldberg
As it says on their web site
"In 1985 Blackstone opened its first small office with a staff
of four, including the two founders and a balance sheet of $400,000.
From those small beginnings, besides big dreams,
the founders held certain core beliefs:
- In a world of giant organizations with a broad array of
services, there was room for a small firm with the highest
levels of professionalism and integrity, senior-level attention
to clients and relationships, and minimum conflicts of interest
- In the 1980s world of "bear hugs" and more or less
hostile takeovers, the firm would only invest capital in
strictly friendly situations, supporting strong management
- In a world of ever larger firms, there were gifted,
entrepreneurial professionals who, in a more
personal setting, with institutional credibility
and congruent goals, would join Blackstone in
creating affiliated businesses in their areas of expertise
- In a world of "other people's money," the firm would
always put significant amounts of its own money in investments
The Blackstone team's success in pursuing those goals and
beliefs is reflected today in the firm's outstanding reputation
and its acknowledged role as a major global player."
This project will be with Blackstone Alternative Asset Management
(BAAM), one of seven business units of The Blackstone Group.
Proposal: Management of Hedge Fund Investment Data
BAAM has approximately $7.5 billion that it invests in hedge funds on
behalf of its clients. BAAM's investments are invested through a
variety of funds of funds (FOF), portfolios of hedge funds, with
varying risk/reward goals. These investments are spread across
approximately 140 different hedge funds.
Due to the diversification requirements of the FOF investments are
spread across virtually every asset class (global equities, global
fixed income instruments, corporate straight and convertible bonds,
currencies, commodities, and derivatives on all of these types of
instruments) and across hedge funds employing a wide variety of
strategies – both directional and relative value.
Given the investment objectives of each FOF portfolio a large portion
of BAAM work involves monitoring the 140 hedge funds and ensuring that
1) they are continuing to perform as expected, and 2) given each
individual manager’s risk exposures, they will perform as intended
across a variety of potential market environments.
To monitor the hedge fund managers BAAM receives a lot of data, in
diverse formats, from them.
BAAM's goal for this project is to design and prototype a tool that
will permit entry, aggregation, and reporting on a wide variety of data
from many asset classes. Challenges will include 1) developing a
user-friendly interface, 2) ensuring the ability to accept and
understand a wide variety of potential data types including actual
securities (IBM, US 10 yr bond, coffee futures, etc.) and “meta-data”
(equity sector exposure, credit spread exposure, etc), and finally 3)
reporting functionality that intelligently aggregates this data to
present a coherent picture of risk and exposures for a portfolio of
While this sounds potentially over-ambitious, BAAM has narrowed the
scope to something that is manageable. Basically, what is needed
is a program that can receive, store and display a Bloomberg ticker, or
one of a fixed number of data values.
The tools for this project will be visual basic and SQL Server.
Students will need to sign an NDA to participate in this project. Students that
work for a Blackstone competitor are not eligible.
345 Park Avenue
New York, NY 10154
Gideon Berger, (212) 583-5069, firstname.lastname@example.org
Business requirements: Chris Rapcewicz, 212/583-5240, email@example.com
Tools and environment: Peter Burton
Resources that will be made available to students
Access to data sources and interfaces.