Larry Fink's big headache

Larry Fink Interview Pic

CEO Larry Fink said last year that he’d spent 'hundreds of millions of dollars rebooting' BlackRock’s stockpicking business.

He still has work to do.

Of the company’s 84 actively managed U.S. equity funds, 70 ranked in the bottom half of their categories over the past five years, according to data from research firm Morningstar. Clients have noticed: In 19 of the past 21 quarters they’ve pulled money from BlackRock’s actively managed U.S. and international equity funds, whose assets declined to $292.8bn at the end of 2014, from $334.5bn in 2010, a period when the Standard & Poor’s 500-stock index soared more than 60%.

'We’ve had to make some tough decisions and had quite a lot of pain in outflows', says Quintin Price, head of the company’s Alpha Strategies group. 'It’s not about outperforming every single quarter. It’s outperforming over time'.

Bloomberg News reports that BlackRock’s stock funds are the one big headache left for Fink. The rest of his businesses are flourishing.

To access the complete Bloomberg News article hit the link below:

Larry Fink Has One Big Headache

Blackstone Forays Into Oakland With Residential Project

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News