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Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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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.