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Stories of Interest
- Banca IMI Securities to Pay $35Mn for Improper Handling of ADRs in Continuing SEC Crackdown
- Members of White House ‘Arts Panel’ Resign En Masse in Protest of Trump
- FINRA Whiffs on Disciplinary Sanction: Bill Singer's 'Negligent Market Manipulation in OTC Stock Promotion'
- Heather Heyer’s Mother Says, ‘I’m Not Talking to the President’
- Goldman Sachs May Have Lost $100Mn on Energy Bet Gone Wrong
- SEC Drops Case Against Ex-JPMorgan Traders Over 'London Whale'
- Financial Advisers That Invest in Technology Need to Accomplish These Two Things
- FINRA Amends Codes Regarding Expedited Arbitrator List Selection
- FINRA July 2017 Quarterly Disciplinary Review (Podcast)
- Senior Exec in Citigroup's Equities Unit Has Left
- Prudential Plotting its Escape From Fed's Tough Oversight
- Why CEOs Spurned Trump's Business Councils, in Their Own Words
- A Stockbroker, Her LLC, and Her Customers' Loans (Or Investment?) - Bill Singer
- Brian Quintenz Sworn In as CFTC Commissioner
- A Gary Cohn Resignation Would 'Crash the Markets' – Mgmt Guru Jeffrey Sonnenfeld
- Trading Firm DRW to Buy RGM Advisors - As Low Volatility Forces Out Weak HFT Players (subsc reqd)
- Reputational Damage - Rajat Gupta on Hard Road to Recovery
- 7th Circuit Affirms Spoofing Conviction - Bill Singer
- Wells Fargo Announces Board Changes
- Judge Rules Against Ex-Goldman Employee in Fed Leak Case
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NEWSLETTERS & ALERTS
BlackRock Axes Over 30, Revamps Active-Equity Group
BlackRock may be the world’s biggest money manager, but size doesn’t mean it’s immune from sluggish fund performance and investor withdrawals. Which led CEO Larry Fink to move forward with some major changes to BlackRock’s actively managed equities business. Mr. Fink now sees computer models and data science as the future of active-equity management.
On Tuesday, the firm announced that over 30 people were fired – including 5 of its 53 fundamental portfolio managers, and about $6 billion in funds were moved into cheaper funds which rely more on computers than on humans for stock-picking. Fees will be reduced by around 19% to 56% on the moved funds. The firm is also moving assets from active-equity funds to an income series that produces higher dividend yields.
On the flip side, the firm expects to increase spending on data-mining techniques, with an eye to improving investment performance. And, over the next 18 months, Mark Wiseman, who heads up BlackRock’s active equities operations, expects to hire about the same number of employees who were laid off – though with different pedigrees. BlackRock will be looking for people with deep research capabilities, technological and data analytics skills, and will put more emphasis on hiring in the emerging markets, especially Asia.