Wednesday, 20 August 2014
Last updated 9 hours ago
Jul 21 2006 | 5:43pm ET
Alternative investments buoyed one Wall Street giant in the second quarter, while another was burned in the sinking market.
Citigroup's profits from alternative investments fell by a third in the second quarter to $257 million from $385 million in the same quarter last year, as revenues from alternatives plummeted by nearly half. Second-quarter revenues dropped from $1.1 billion to $584 million. Citigroup blamed poor returns in its private equity and securities portfolios, though it said those losses were partly offset by high client revenues. Overall, Citigroup posted 4% increase in second-quarter income.
Merrill Lynch, meanwhile, saw its bottom-line boosted by stellar proprietary stock trading performance, even as hedge funds around the world suffered widespread losses. Proprietary trading revenue soared 84% for the quarter, as Merrill saw net earnings jump 44% to $1.6 billion on revenues of $8.2 billion. Meanwhile, BlackRock, which is buying Merrill Lynch Investment Managers, said hedge fund redemptions totaled $132 billion in the second quarter, though, overall, the firm's alternative assets under management rose $247 billion.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note