Wednesday, 26 October 2016
Last updated 10 hours ago
Jul 21 2010 | 11:20am ET
The hedge fund business has been very good to money management giant BlackRock. The New York-based firm said that its second-quarter profit nearly doubled, thanks in no small part to its acquisition last year of Barclays Global Investors, at the time the world’s 10th-largest hedge fund firm.
The BGI acquisition more than doubled BlackRock’s assets under management to more than $3 trillion, making it the world’s largest asset manager. And with those new trillions came new fee income, helping push BlackRock’s net income for the last three months to $432 million, up from $218 million in the year-earlier period.
BlackRock said inflows into its long-term funds were $8.9 million on the quarter, less than a quarter of what it had been a year earlier. The firm blamed the slowdown on investors who had accounts at both BlackRock and BGI consolidating their portfolios.