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.
Jan 30 2018 | 9:49pm ET
As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...
May 24 2017 | 9:25pm ET
Starting in 2019, financial industry executives sitting for the coveted Chartered...
Feb 14 2018 | 9:57pm ET
Tasked with delivering returns on client capital, a common dilemma for many alternative...