BlackRock Hedge Funds Help Profit Soar

Jan 18 2008 | 8:07am ET

BlackRock’s hedge funds enjoyed a stellar year, and the money management giant profited handsomely.

The New York-based firm, the biggest publicly-traded asset manager, said its fourth-quarter earnings jumped 90% to $322 million. Its revenue rose 42% to $1.4 billion, thanks in no small part to a four-fold increase in performance fees.

“We had an extraordinary year in terms of performance fees,” CEO Laurence Fink said. “Our fixed-income hedge funds navigated very carefully in the credit crisis.”

BlackRock’s Obsidian hedge fund, a fixed-income offering, returned almost 30% last year. In addition, the firm acquired Quellos Group’s $20 billion hedge fund unit, helping push its alternative assets under management up 48% to $71 billion. Performance fees soared from $40 million in 2006 to $153 million last year.

 


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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