Blackstone Readies Fund Of Former Proprietary Tradersâ Hedge Funds Sep 29 2010 | 8:56am ET The Blackstone Groupâs fund of hedge funds unit has struck upon a new business line: seeding former proprietary tradersâ new hedge funds. Blackstone Alternative Asset Management plans to launch a fund dedicated to seeding traders chased from banks by the newly-enacted Volcker rule, which bars proprietary trading. The new vehicle could close as soon as next month, Reuters reports. The move comes after BAAM agreed to back a new hedge fund headed by Credit Suisseâs top commodities arbitrage trader, George Taylor. Blackstone is investing $150 million in the unnamed fund, which will invest in commodities and energy, as well as currencies and other macro strategies. BAAM has $28.5 billion in assets under management.