The Blackstone Group reported a $165.6 million profit for the second quarter, thanks to huge gains in its hedge fund businesses, according to the International Herald Tribune. The private equity firms hedge funds reported $225.2 million in revenue, offsetting other gains and large losses, including a pretax loss of $185.5 million.
Blackstone executives expect the market volatility to continue, with regional banks continuing to suffer from bad loans. The firm bet against subprime mortgages in 2006 and 2007 and has been investing heavily other areas since then.
Our bet is that were near a bottom, said Blackstone President Hamilton James.