BlackRock Profit Rises On BGI Acquisition

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.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note