Business Context and Reporting Period
This Form 13F-HR filing reports the equity holdings of The Blackstone Group L.P. as of the period ended December 31, 2012. The report was filed on February 14, 2013, by John G. Finley, an authorized person. The filing includes holdings for The Blackstone Group L.P. and one other included manager, GSO Capital Partners LP.
Key Financial Metrics
As this is a Form 13F Holdings Report, it discloses portfolio positions rather than the operating financial performance (revenue, profit, cash flow) of Blackstone Inc. itself. Key metrics from the filing include:
- Total Portfolio Value: $9,641,261,000 (reported in thousands).
- Total Number of Holdings: 38 entries.
- Top Holdings by Value:
- Freescale Semiconductor Ltd: $2,159,467,000
- Nielsen Holdings N V: $1,565,894,000
- Kosmos Energy Ltd: $1,559,931,000
- TRW Automotive Holdings Corp: $1,044,774,000
- PBF Energy Inc: $984,136,000
- Voting Authority: The filing details sole, shared, and none voting authority for each position, with significant "Sole" voting authority in major holdings like Freescale, Nielsen, and TRW Automotive.
Material Changes and Portfolio Composition
The filing does not provide comparative data against the prior quarter to calculate material changes in position size or value. However, the portfolio composition reveals a heavy concentration in:
- Technology and Media: Significant stakes in Freescale Semiconductor, Nielsen Holdings, and Clear Channel Outdoor Holdings.
- Energy: Holdings in Kosmos Energy, PBF Energy, and CrossTex Energy.
- Real Estate and Hospitality: Positions in General Growth Properties, DiamondRock Hospitality, and Felcor Lodging Trust.
- Financials and Insurance: Investments in BankUnited, MBIA, and Zions Bancorporation.
Several footnotes indicate complex ownership structures, including holdings through limited partnerships (e.g., Freescale LP) and entities controlled by Stephen A. Schwarzman (e.g., Blackstone Family GP L.L.C.).
Guidance, Risks, and Unusual Items
Management Commentary and Guidance: This filing type does not contain management commentary, forward-looking guidance, or risk factors regarding Blackstone's own operations.
Unusual Items and Contingencies:
- Derivatives: The portfolio includes call options on Dish Network Corp and put options on KeyCorp, SPDR Series Trust, and Zions Bancorporation.
- Corporate Actions: A footnote notes that the GMX Resources Inc. position does not reflect a 13-to-1 reverse stock split effective January 3, 2013.
- Discretionary Authority: Certain shares (e.g., in Cumulus Media, Kosmos Energy, Nielsen, and Orbitz) are reported but are not under the investment discretion of The Blackstone Group L.P., but rather under the discretion of other entities controlled by Stephen A. Schwarzman.
Important Facts for Investor Verification
- Portfolio Concentration: The top 5 holdings represent approximately 68% of the total reported value ($9.64 billion), indicating high concentration risk in specific sectors.
- Ownership Structure: Verify the distinction between shares held directly by Blackstone funds versus those held by entities controlled by Stephen A. Schwarzman, as noted in footnotes (b), (g), (h), and (i).
- Derivative Exposure: Confirm the current status of the call and put options reported, as these affect the net economic exposure to the underlying securities.
- Post-Period Adjustments: Note the GMX Resources reverse stock split occurring immediately after the reporting period, which alters the share count and price per share for that position.
- Scope of Report: Remember that this document reflects holdings managed by Blackstone, not the financial performance of Blackstone Inc. itself.