Thursday, 18 December 2014
Last updated 28 min 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.