Blackstone is now my largest position, displacing VHC, for good reason. VHC is all concept, dependent upon the courtroom to make their living. BX is a behemoth, monster of finance, landlord and proprietor of assets in demand.

Total exposure to US real estate stands at a staggering $57 billion. A few years ago this would have been deemed to be a dreadful data point. Men clothed in burlap would sell BX short, hoping for a swift decapitation and subsequent bankruptcy. But we are living in a different world now, aren’t we? Re is in boom mode and BX in the captain’s seat.

To be specific, the sages at Blackstone took it upon themselves to buy into the distressed residential housing market, purchasing 17,000 homes, renovating them for income (rent) or resale.

Source: Credit Suisse

Real estate represents one of the four pillars of BX’s business. They are profiteers, flush with capital, dominant in the private equity world and its stock price is heading higher.