Saturday, 26 July 2014
Last updated 15 hours ago
Oct 20 2010 | 12:50pm ET
Despite some sizeable outflows, the hedge fund business has continued to prove profitable for BlackRock.
The world’s largest money manager said its third-quarter net income rose 74% to $551 million, easily topping analysts’ expectations. The New York-based firm credited its acquisition in December of Barclays Global Investors, then the world’s 10th-largest hedge fund manager, for the big increase.
Still, at least some former BGI investors seem uncertain about BlackRock. Quantitative funds acquired from BGI suffered $33.9 billion in outflows, roughly half of the $64 billion in redemptions at the firm during the quarter. It is BlackRock’s third straight quarter of net outflows, following those of $33.5 billion and $30.4 billion in the first and second quarters, respectively.
Still, strong performance led to a 9% increase in assets under management to $3.45 trillion. Alternative investments accounted for $4.2 billion of that growth and now make up $105.7 billion of BlackRock’s assets. BlackRock said it suffered $300 million in outflows from alternatives funds due to its merger with BGI.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…