Blackstone Inc. institutional holdings, Q3 FY2008

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SEC Filing Summary: Form 13F-HR

Business Context and Reporting Period

This filing is a Form 13F Holdings Report submitted by The Blackstone Group L.P. for the quarter ended September 30, 2008. The report was signed on November 14, 2008, by Robert L. Friedman. The filing covers holdings managed by The Blackstone Group L.P. and three other included managers: Blackstone Capital Partners V L.P., Blackstone Kailix Advisors L.L.C., and GSO Capital Partners LP.

Key Financial Metrics

Form 13F filings report equity holdings and do not disclose the manager's internal revenue, profit, cash flow, or debt. The following metrics reflect the reported portfolio value:

  • Total Reported Portfolio Value: $1,516,945,000 (reported in thousands).
  • Total Number of Holdings: 72 entries.
  • Largest Single Holding: Orbitz Worldwide Inc. ($270,145,000).
  • Top 5 Holdings by Value:
    1. Orbitz Worldwide Inc. ($270,145,000)
    2. Alliance Data Systems Corp ($155,639,000)
    3. Alpha Natural Resources Inc ($144,004,000)
    4. Lorillard Inc ($106,725,000)
    5. Finisar ($10,100,000) - Note: High share count (10M) relative to value suggests low price per share.

Material Changes and Portfolio Composition

The filing provides a snapshot of holdings as of September 30, 2008, and does not contain comparative data to prior periods to determine material changes in position size or value. However, the portfolio composition reveals significant exposure to specific sectors and distressed assets relevant to the 2008 financial crisis:

  • Financial Sector Exposure: Significant holdings in Lehman Brothers Holdings Inc. (multiple entries totaling approx. $208,000) and Wachovia Corp (multiple entries totaling approx. $2,000,000). Several entries for these issuers involve Put and Call options.
  • Real Estate Exposure: Holdings in KB Home, Pulte Homes, Ryland Group, and Toll Brothers.
  • Derivatives: The portfolio includes various Put and Call options, including positions on Alcoa Inc., Huntsman Corp., Lehman Brothers, and SPDR Trust Unit Ser 1.

Guidance, Outlook, and Risks

Guidance and Outlook: This filing type does not contain management commentary, forward-looking guidance, or strategic outlooks.

Risks and Contingencies: While the filing does not explicitly list risks, the presence of holdings in Lehman Brothers (which filed for bankruptcy in September 2008) and Wachovia (which was acquired by Wells Fargo in October 2008) indicates significant exposure to the ongoing financial crisis. The use of Put options on certain equities suggests hedging strategies or bearish views on specific positions.

Key Facts for Investor Verification

  • Portfolio Concentration: Verify the impact of the top 5 holdings, which represent a significant portion of the reported $1.5 billion value.
  • Distressed Asset Exposure: Confirm the status and valuation of Lehman Brothers and Wachovia holdings given the market events of late 2008.
  • Derivative Positions: Review the specific terms of the Put and Call options listed (e.g., on Alcoa, Huntsman, Lehman) to understand potential liabilities or hedging benefits.
  • Manager Scope: Note that this report aggregates holdings for four distinct managers under the Blackstone umbrella.