BlackRock loses $1.7 TRILLION in six months
The world’s largest asset manager has picked up the crown for losing the largest amount of money ever by a single firm over a six-month period.
I thought you would enjoy this:
BlackRock is the world’s largest asset manager. They were the first firm to break through $10 trillion of assets under management
It’s nice to see one of the major world players take a punch in the gut. But I am sure they have something up their sleeves.
Here are some excerpts from the article:
“BlackRock’s management was quick to invoke the first-half market carnage when revealing the investment performance last week. “2022 ranks as the worst start in 50 years for both stocks and bonds,” chairman and chief executive officer Larry Fink said on his earnings call.”
“BlackRock’s roots lie in active fixed income. Fink founded the company in 1988 around strategies that “emphasize value creation through security selection…and are implemented by a team of highly qualified portfolio managers employing a strictly disciplined investment process,” according to the 1999 listing prospectus.”
“All that may be about to change. The collapse in bond markets this year has shaken money out of active fixed-income funds. BlackRock saw clients pull more than $US20 billion during the first half of the year in a rout that has seen over $US200 billion leave the industry.”
“Until recently, bond ETFs were viewed with suspicion. Back in 2015, investor Carl Icahn, sitting alongside Fink on TV, called BlackRock “an extremely dangerous company.” His rationale was that the firm’s ETFs embed illiquid bonds in unsuitably liquid wrappers. “They are going to hit a black rock,” he said.”
You can read the full report here.
What do you think? Counterpart BLACKSTONE, just raised $30 BILLION for it’s next real estate fund.. Waiting for a correction to buy back up and pump up residential real estate? I’ll discuss this next week on the substack & YouTube channel. Make sure to subscribe.
Things are getting even more interesting.
-JD
GOOD !