Key Takeaways
- • BlackRock Fixed Income CIO Rick Rieder is raising outside capital for a new multi-asset hedge fund called TriaXial, his first hedge fund launch in years, according to Bloomberg.
- • TriaXial is being run alongside portfolio manager Russell Brownback and will combine the firm's highest-conviction fixed-income ideas into a single strategy using opportunistic, low-correlation trades and modest leverage.
- • Rieder oversees roughly $3tn in assets as BlackRock's CIO of fixed income, and the fund launch follows his being passed over for Federal Reserve chair in favor of Kevin Warsh.
- • Demand for Rieder-linked products is strong, with the iShares Flexible Income Active ETF drawing about $6.5bn between August and February and reaching roughly $17bn in total assets.
Summary
BlackRock's Fixed Income Chief Investment Officer Rick Rieder is seeking investor capital for a new hedge fund named TriaXial, according to a report by Bloomberg cited by Hedgeweek. The report, based on regulatory filings and unnamed people familiar with the matter, says the fund has been in development since last year and that fundraising has accelerated in recent weeks. Russell Brownback will serve as portfolio manager alongside Rieder.
The strategy is described as a combination of the firm's highest-conviction ideas across its fixed-income platform, packaged into a single multi-asset approach. The fund is expected to deploy opportunistic trades with low correlation to broader markets while using modest leverage to enhance returns. Rieder oversees approximately $3tn in assets as CIO of fixed income and remains one of the most prominent figures in global bond markets.
The launch comes after Rieder was considered for the Federal Reserve chair role, a process that ultimately saw Donald Trump select Kevin Warsh. TriaXial is not Rieder's first hedge fund initiative: he previously founded R3 Capital Management in 2008 with backing from Lehman Brothers. After Lehman's collapse during the financial crisis, BlackRock assumed control of the business in 2009, and Rieder subsequently joined the firm to lead fixed-income alternatives.
Investor demand for Rieder's strategies has strengthened in recent months. The iShares Flexible Income Active ETF attracted around $6.5bn between August and February, bringing total assets to roughly $17bn.
The strategy is described as a combination of the firm's highest-conviction ideas across its fixed-income platform, packaged into a single multi-asset approach. The fund is expected to deploy opportunistic trades with low correlation to broader markets while using modest leverage to enhance returns. Rieder oversees approximately $3tn in assets as CIO of fixed income and remains one of the most prominent figures in global bond markets.
The launch comes after Rieder was considered for the Federal Reserve chair role, a process that ultimately saw Donald Trump select Kevin Warsh. TriaXial is not Rieder's first hedge fund initiative: he previously founded R3 Capital Management in 2008 with backing from Lehman Brothers. After Lehman's collapse during the financial crisis, BlackRock assumed control of the business in 2009, and Rieder subsequently joined the firm to lead fixed-income alternatives.
Investor demand for Rieder's strategies has strengthened in recent months. The iShares Flexible Income Active ETF attracted around $6.5bn between August and February, bringing total assets to roughly $17bn.
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