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 calendar quarter ended December 31, 2008. The report was signed on February 17, 2009, by Robert L. Friedman. The filing covers the equity holdings of The Blackstone Group L.P. and includes three other institutional investment managers: Blackstone Capital Partners V L.P., Blackstone Kailix Advisors L.L.C., and GSO Capital Partners LP.
Key Financial Metrics
As this is a Form 13F filing, it reports portfolio holdings rather than the operating financial performance (revenue, profit, cash flow) of Blackstone Inc. itself. Key metrics from the filing include:
- Total Reported Value: $1,098,871,000 (reported in thousands).
- Total Number of Holdings: 28 entries.
- Largest Holdings by Value:
- Republic Services Inc.: $534,863,000 (21,575,772 shares).
- Orbitz Worldwide Inc.: $178,563,000 (46,021,327 shares).
- TRW Automotive Holdings Corp: $165,817,000 (46,060,285 shares).
- Alliance Data Systems Corp: $133,439,000 (2,867,800 shares).
- Debt and Liquidity: The filing text does not provide data on the firm's corporate debt, liquidity, or operating margins.
Material Changes and Unusual Items
The filing highlights specific structural changes and investment discretion nuances:
- Merger Activity: A significant portion of the Republic Services Inc. holding (approximately 21.5 million shares) resulted from the merger between Allied Waste Industries, Inc. and Republic Services, Inc., consummated on December 5, 2008. These shares were exchanged at a ratio of 0.45 Republic shares for each Allied Waste share.
- Investment Discretion: Several major positions are not under the direct investment discretion of The Blackstone Group L.P. but are controlled by Mr. Stephen A. Schwarzman or specific affiliates:
- Centennial Communications Corp. (discretion of Mr. Schwarzman).
- Orbitz Worldwide Inc. (discretion of Blackstone LR Associates (Cayman) V Ltd.).
- Republic Services Inc. (discretion of Mr. Schwarzman).
- Derivatives: The portfolio includes positions with call options (Huntsman Corp) and put options (iShares Russell 2000).
- Zero Holdings: Blackstone Kailix Advisors L.L.C. had no reportable positions in Section 13(f) securities as of the period end.
Guidance, Outlook, and Risks
The filing text does not contain management commentary, forward-looking guidance, or specific risk disclosures regarding the firm's future operations. The document is strictly a regulatory disclosure of equity holdings as of the reporting date.
Investor Verification Checklist
- Verify the distinction between holdings managed by The Blackstone Group L.P. versus those under the personal discretion of Stephen A. Schwarzman.
- Confirm the impact of the Allied Waste/Republic Services merger on the reported share count and valuation.
- Note that the reported total value ($1.1 billion) represents only the Section 13(f) reportable equity holdings and does not reflect the firm's total assets under management or private equity portfolio value.
- Check subsequent filings to track the disposition of the large Republic Services and Orbitz positions.