BlackRock an example of the “vise-like squeeze”?
Jan 20th, 2008 | Filed under: Institutional InvestingBlackRock’s Q4 earnings announcement last Thursday showed why alternative investments are so popular amongst asset managers (see Bloomberg piece, “BlackRock Earnings Beat Estimates on Hedge-Fund Fees“). As McKinsey and others have predicted, asset management will become bifurcated between “cheap beta” and “high alpha” products (see related posting, “Traditional Asset Managers Caught in a Vise-Like Squeeze“). In the case of BlackRock, however, this can be taken a step further. It appears that the firm’s new subscriptions last year were dominated by “high alpha” and plain old cash.
BlackRock’s press release alludes to this trend:
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