Wednesday, 1 October 2014
Last updated 4 hours ago
Jan 28 2010 | 11:01am ET
Hedge funds are proving good business for BlackRock.
The world’s largest money management firm said its fourth quarter income nearly quintupled, buoyed by the firm’s acquisition of Barclays Global Investors and by a fivefold increase in hedge fund performance fees.
New York-based BlackRock said it fourth quarter earnings were $256 million, up from $52 million in the year-earlier period. Revenue jumped 45% to $1.54 billion, thanks in no small part to the huge increase in performance fee income, which hit $125 million in the quarter.
The deal for BGI, the world’s 10th-largest hedge fund manager with some $17 billion in hedge fund assets—and more than $1 billion in other assets—helped BlackRock double its assets under management to $3.35 billion. The BGI acquisition, which closed last month, added $94 million in quarterly income, although that was offset by $108 million in after-tax costs related to the purchases. BlackRock paid $13.5 billion for BGI.
Investors poured an additional $38 billion into BlackRock’s and BGI’s funds in the fourth quarter, and have committed another $39.7 billion through the first three weeks of January.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...