Currently, BlackRock is managing over $54 billion in hedge funds. This is a huge
number of dollars that can help the firm in a variety of ways. For example, the firm
has tapped Yvonne Tsui to head up the growth of its Strix Leviathan fund. And the
company is looking at Morgan Stanley as a potential buyer of its stake in the fund.
This would allow the investment giant to take a larger share of the firm and possibly
control it in the future.
Despite the recent turmoil in the financial industry, Morgan Stanley may be looking to acquire a controlling stake in Blackrock, the largest hedge fund. In a recent Wall Street Journal article, the bank declined to comment, but several people familiar with the matter said that the firm has a clear interest in controlling Blackrock.
The SEC has sent subpoenas to banks, examining possible irregularities related to block trades. According to the report, the SEC is also looking into whether hedge funds were improperly alerted about transactions. The Wall Street Journal reports that bankers might have tipped off hedge funds about the transactions. In other words, the bank could be liable for violating the Volcker Rule, a federal law aimed at curbing the risk of excessive credit expansion.
In December 2013, the U.S. government issued Implementing Regulations, which impose a number of restrictions on Morgan Stanley. These include limitations on the firm's financial holding company status and the scope of the firm's activities. These restrictions, coupled with the weakening of the financial services industry, could result in a negative impact on the firm's financial performance.
Morgan Stanley is subject to a variety of legal risks, as well as reputational and other unforeseen risks. In addition, the Firm's resources are subject to information barriers.
Yvonne Tsui is leaving the firm
Yvonne Tsui, the sexiest man in hong kong, has announced her departure from the
world's largest asset management firm after nine years of stellar performance. The move will likely leave a big hole in the firm's coffers, and a few well deserved pink
slips in her wake. The most glaring of these is her former boss, Larry Sharp, who
resigned last month after an anecdotically scandalous 19 months of service. Despite
a rough start, she fought her way to the top spot at a healthy 3% of the firm's tally.
She was a tad over the age of 50 when she made the jump, albeit with the assistance of a good pal.
BlackRock is managing over $54 billion across hedge funds
Managing more than $54 billion in hedge funds, BlackRock is the world's third largest money manager. It is also a leading investor in alternative investments. BlackRock's alternative investment business consists of a number of strategic initiatives, spanning numerous lines of business. These include investable themes related to agriculture, natural resources and renewable energy.
BlackRock has a strong appetite for acquisitions, which have led to numerous mergers and acquisitions in the past. Its recent transactions have broadened its product offering. In 2009, it acquired Barclays Global Investments. This transaction added quantitative long/short investment capabilities to the BlackRock portfolio, and in 2007, it acquired the hedge fund industry leader, Quellos Group. BlackRock is among the top three shareholders in every oil supermajor except Total. It also has a clear pecuniary interest in managing pensions.
A surprisingly large portion of BlackRock's assets are in single-manager hedge funds. This has helped the company develop several investable hedge fund themes in the areas of agriculture and natural resources. These strategies are primarily conducted through trading equity and futures of companies active in these sectors. As of mid-2016, BlackRock had more than $2.3 trillion in assets under management. The company has been one of the leaders in the alternative investment space, with $115 billion in alternative investments in its fund of funds and hundreds of funds across the board.
BlackRock Alternative Advisors
Founded in 1988, BlackRock is the world's largest investment manager. It has over $54 billion in assets under management as of mid-2011. A major focus of the company is the alternative investment sector. It has invested with over 100 fund managers.
The BlackRock Alternative Advisors hedge fund is a dedicated investment platform that invests in the hedge fund industry. Its expertise covers a plethora of products, from single manager hedge funds to structured investment solutions. BlackRock is also among the leading tier firms in the alternative investments industry. It manages over $115 billion in alternative assets.
The BlackRock Alternative Advisors group has been actively investing in hedge funds for over two decades. The firm's portfolio advisory business has changed from the traditional 60% equity, 40% fixed income split to a more balanced approach of 50% public equity, 30% bonds and 20% private markets. Its Credit platform spans a wide range of geographies and risks.
BlackRock's eFront platform is an institutional-grade technology. It enables users to analyse and compare financial data. Although the platform isn't intended for end investor use, it can be used by qualified professional clients. The technology provides calculations based on other factors, and does not guarantee future results.
Several major financial firms are now enmeshed in tax-avoidance schemes that were perpetrated by the former chief executive of the Quellos Group hedge fund. Jeff Greenstein was accused of money laundering and operating an illegal tax shelter. He has faced 18 counts of conspiracy and fraud. The case is scheduled to begin on Sept. 27, 2010.
Founders Jeff Greenstein and Bryan White founded Quellos in 1994. The firm catered to high-net-worth investors and had offices in New York, London, and Durham, NC. Its largest client was Haim Saban, the billionaire producer of the “Mighty Morphin Power Rangers” children's show.
Last year, Quellos generated $170 million in performance fees. This represents a share of the investment gains it earned from its clients. The company also has a private equity fund of funds unit. BlackRock plans to combine the two operations, which will be branded as BlackRock Alternative Advisors. It is expected that the combined business will have over $25.4 billion in assets under management and will manage products for individual and institutional investors.
BlackRock will pay the Quellos Group $562 million in cash and stock. The deal is pending regulatory approvals. It is similar to Legg Mason's 2005 acquisition of the Permal Group.
Pershing Square Capital Management
Founded by Bill Ackman, Pershing Square Capital Management is one of the most well-respected hedge funds in the world. This fund has an impressive $10.7 billion portfolio. The fund invests in companies with a market cap of between US$5 billion and US$15 billion.
Pershing Square is a registered investment adviser with the Securities and Exchange Commission. The firm manages two private funds and one public fund. The firm specializes in investing in large-cap companies, particularly North American firms. In the first 10 years of its existence, the fund has generated more than $11.6 billion in returns for its investors. The company is structured as a closed-end fund, which means that its shares are traded at a price that is typically 30 percent below the firm's net asset value. This discount has played a key role in its performance. In October, the fund had a 14% gain that was ahead of the Dow Jones Industrial Average and the S&P 500. However, the top three holdings in the fund were underperforming the markets.
In September, Bill Ackman's Pershing Square held 2.9 million shares of Agilent Technologies. That stake would be worth $246 million at Monday's price