418.29 0.00 (0.00%)
After hours: 6:26PM EDT
|Bid||419.83 x 1000|
|Ask||429.99 x 900|
|Day's Range||417.53 - 423.41|
|52 Week Range||360.79 - 492.00|
|Beta (3Y Monthly)||1.39|
|PE Ratio (TTM)||15.90|
|Earnings Date||Oct 14, 2019 - Oct 18, 2019|
|Forward Dividend & Yield||13.20 (3.10%)|
|1y Target Est||527.92|
The yield curve inversion on Wednesday had many investors warning of an imminent recession. Tony DiSpirito, head of U.S. fundamental active equity at BlackRock, joined Yahoo Finance's The Final Round to discuss.
The BlackRock investment group took a $875 million stake in Authentic Brands, the company that owns sports illustrated, juicy couture, nine west and dozens of other big brands.This is the first investment for BlackRock's new private-equity fund, Long Term Private Capital, which was created to diversify away from the group's core ETF business. Yahoo Finance's Dan Roberts, Myles Udland, Emily McCormick, and Ines Ferre discuss.
BlackRock now owns the largest slice of the Authentic Brands pie. The deal, valued at more than $4 billion dollars makes BlackRock the largest shareholder of the company that also owns brands like Sports Illustrated and Nine West. Matt Miskin of John Hancock Investment joins Yahoo Finance’s Adam Shapiro, Julie Hyman and Brian Sozzi to discuss.
Yahoo Finance's Dan Roberts, Heidi Chung, and Brian Cheung discuss Blackrock's new stake in Authentic Brands which owns brands such as Sports Illustrated and Nine West.
Rite Aid, CBS, Viacom, BlackRock, Ford and Anheuser-Busch are the companies to watch.
TORONTO, Aug. 20, 2019 -- BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE: BLK), today announced.
(Bloomberg Opinion) -- Negative mortgage rates in Denmark. Sub-zero yields on 10-year corporate bonds from Nestle SA. A 100-year Austria bond trading at more than twice its face value. Record low yields on 30-year Treasuries. For fund managers trying to navigate the fixed-income universe, the bond market’s reaction to the prospect of a recession makes life more treacherous every day.Investors see a second Federal Reserve interest-rate cut at its next meeting on Sept. 18 as a certainty, based on prices in the interest-rate futures market. But it’s the European Central Bank that appears to be facing the more difficult policy decision, given that its key interest rate is stuck at -0.4%.As the chart above shows, futures contracts in the euro zone have dramatically repriced since the beginning of the month. Traders are anticipating that borrowing costs will drop even further into negative territory and that the ECB will resume its quantitative easing program.But some investors are questioning how effective the central bank’s effort to gobble up more of the outstanding debt in the government bond market can be when yields have already reached record lows.For Philipp Hildebrand, vice-chairman of BlackRock Inc., the ECB is already out of ammunition – which means investors should indulge in some more magical thinking about what comes next in the list of unconventional policy measures.“We’re going to see a regime change in monetary policy that’s as big a deal as the one we saw between pre-crisis and post-crisis, a blurring of fiscal and monetary activities and responsibilities,” Hildebrand told Bloomberg Television’s Francine Lacqua last week.BlackRock has just published a paper detailing what it expects the guardians of monetary stability to do next. Here’s the key recommendation from the paper, which is entitled “Dealing with the next downturn: From unconventional monetary policy to unprecedented policy coordination.”An unprecedented response is needed when monetary policy is exhausted and fiscal policy alone is not enough. That response will likely involve “going direct”: Going direct means the central bank finding ways to get central bank money directly in the hands of public and private sector spenders.What’s incredible about the BlackRock policy prescription is that three of the paper’s four authors are former central bankers who now work for the asset manager. Hildebrand is the former head of the Swiss Central Bank, Stanley Fischer did stints at the Federal Reserve and the Bank of Israel, while Jean Boivin is ex-deputy governor of the Bank of Canada.Think about that for a second. Three former central bankers – not academics, not professors, not theoreticians – are saying that central bankers are out of ammunition, and that politicians won’t be able to muster enough fiscal firepower to resuscitate growth. These are people who’ve been at the coalface of implementing monetary policy. So the rest of us need to pay attention.QuicktakeHelicopter MoneyAs my Bloomberg Opinion colleague Brian Chappatta points out, BlackRock’s publication is timed to coincide with the annual Kansas City Fed’s Economic Policy Symposium that kicks off on Thursday in Jackson Hole, Wyoming. While that gathering has the anodyne title of “Challenges for Monetary Policy,” the size of the task currently facing the world’s central bankers suggests the meeting could be one of the most important in recent years.Concern about the outlook for growth is mounting. Even the German government, which has resisted the temptation to take advantage of ultra-cheap money to boost spending, is readying a package of fiscal measures to counter a deep recession, my colleague Birgit Jennen at Bloomberg News reported Monday. But improving energy efficiency, encouraging hiring and increasing social welfare payments may prove too little, too late.In the euro zone, BlackRock suggests the ECB could adopt a plan first proposed in 2016 by Eric Lonergan, a fund manager at M&G Prudential, in which the central bank offers zero-coupon loans to each adult citizen. While Lonergan is explicitly in favor of helicopter money, the BlackRock paper sees a risk of it creating runaway inflation:History is littered with examples of how central bank money printing leads to runaway inflation or hyperinflation. Yet there is little experience in using helicopter money to generate just-enough inflation to achieve price stability. History as well as theory suggests large-scale injections of money are simply not a tool that can be fine tuned for a modest increase in inflation.BlackRock’s tweak to the helicopter money proposal, popularized by former Fed Chairman Ben Bernanke in a 2002 speech, involves establishing a permanent “standing emergency fiscal facility” that would only used in extremis, and in combination with monetary and fiscal policy becoming “jointly responsible for achieving the inflation target.” It would come with “a predefined exit point and an explicit inflation objective.”Both of those latter constraints are likely to prove as problematic for BlackRock’s proposal as they have for the current unconventional policies pursued by central banks. Exiting quantitative easing and returning interest rates to more normal levels have both turned out to be far more difficult than expected; and explicit inflation objectives are useless when prices stubbornly refuse to rise.Nevertheless, bond investors have definitely caught wind of something shifting in the monetary-policy air, and have reacted by extending the list of never-seen-before happenings in the debt market. Maybe the next thing will turn out to be a helicopter dropping money – with Christine Lagarde, the incoming president of the ECB, in the pilot’s seat.To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Private equity firms, and their staff, are enjoying bumper pay days. BlackRock, though, sniffs a competitive opportunity. of the Authentic Brands marketing business for $870m, signalled a fresh departure.
BlackRock (BLK) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. All eyes will be on a small resort in Wyoming this week, where Federal Reserve Chairman Jerome Powell will speak for the first time since bond markets hit the recession alarm bells.His words at the Kansas Fed’s annual Jackson Hole gathering will be closely watched for clues on what U.S. policy makers will do next. A quarter-point interest rate cut is fully priced in for September, but it’s not clear what it would take to push officials to restart quantitative easing.U.S. data still point to economic momentum; inflation perked up and retail sales rose in July. However, never-ending U.S.-China trade war uncertainty and weaker life signs elsewhere in the world point to trouble ahead. The 10-year Treasury yields fell below the 2-year rate for the first time since 2007. The inversion didn’t last, but the bond market is making its feelings about the outlook pretty clear.Powell’s “speech will be scrutinized for clues as to whether policy makers are reconsidering their course for ‘insurance’ rate cuts to become a full easing cycle,” said Bloomberg Economics’ Yelena Shulyatyeva and Eliza Winger. “Given heightened risks to the economic outlook, any clarification on the conditions that could push the Fed to invoke unconventional measures, such as a full-blown QE, would be crucial.”Here’s our weekly rundown of other key economic events, and click here for more from Bloomberg Economics:U.S. and CanadaIt’s a Fed frenzy this week. To whet the appetite for Jackson Hole, Wednesday offers the minutes of the FOMC’s July policy meeting, when it cut interest rates for the first time since the financial crisis. Powell described it as a “mid-cycle adjustment,” rather than the start of a major easing cycle.That’s something that didn’t please Donald Trump, whose ongoing verbal attacks provide the other backdrop to the Wyoming gathering. Among the latest criticisms from the U.S. president: The Fed has been “too slow to cut” and is “clueless.” The title of the Jackson Hole symposium is, aptly, “Challenges for Monetary Policy.”Canada releases consumer prices data, along with June retail sales and manufacturing numbers before its second-quarter GDP estimate the following week.For more, read Bloomberg Economics’ full Week Ahead for the U.S.AsiaSouth Korean exports on Wednesday will offer an early read on the latest on global trade. The figures -- for August -- follow sharp year-on-year declines in both June and July. Global trade worries are also having an effect in Japan, where the yen’s haven appeal is pushing the currency higher. For the Bank of Japan, that’s hampering its efforts to boost inflation. Data Friday are forecast to show price growth stuck at 0.6% in July, the slowest since 2017.Indonesia will decide on interest rates, with most economists surveyed so far seeing no change in policy.For more, read Bloomberg Economics’ full Week Ahead for AsiaEurope, Middle East and AfricaThe European Central Bank jumps into the spotlight on Thursday, when the record of its last meeting is released. That gathering saw no policy change, but Mario Draghi set in train a countdown for September, when a rate cut is expected. QE is also on the table, though just as an option for now.The ECB record will arrive just hours after the latest euro-zone economic snapshot from the monthly purchasing managers indexes. Germany is in focus after its second-quarter contraction, which has stirred up recession chatter, and manufacturing remains the (very, very) weak link in Europe’s largest economy.Israel may announce on Sunday that annual economic growth slowed sharply in the second quarter; the central bank looks set to reverse course later this month on plans to raise interest rates. Egypt, the Middle East’s fastest-growing economy, will probably join the global easing parade on Thursday, when it’s expected to cut its deposit rate by 100 basis points to 14.75%.Zambia could continue bucking the trend and tighten policy to support the kwacha and fight price growth. After a 50 basis-point increase in May, inflation accelerated further in July, leaving it above the central bank’s target band of 6% to 8% amid the worst drought in nearly four decades.For more, read Bloomberg Economics’ full Week Ahead for EMEALatin AmericaAfter Mexican policy makers cut interest rates for the first time in five years, investors will focus on Thursday’s early-August inflation data to assess whether the easing cycle may continue in September. On the same day, Brazil’s mid-August price index is expected to come in below target, showing the path for lower rate remain open.A series of second-quarter GDP numbers are also due from Mexico, Chile and Peru. Mexico’s final GDP reading on Friday may be revised down, meaning the country may still be considered in technical recession.For more, read Bloomberg Economics’ full Week Ahead for Latin America\--With assistance from Walter Brandimarte.To contact the reporter on this story: Fergal O'Brien in Zurich at email@example.comTo contact the editors responsible for this story: Craig Stirling at firstname.lastname@example.org, Zoe SchneeweissFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- With support for globalization and free trade declining in much of the world, Asia has a historic chance to break out of its traditional role as a capital exporter to the West and to instead redirect flows to improve its own economies and financial industries.According to some estimates, the region’s pool of wealth at $110 trillion exceeds those of North America and Europe and is growing faster. Japan and China were at or near the top of foreign portfolio investment in the United States, including stocks and short- and long-term bonds, in 2017 with $2 trillion and $1.5 trillion respectively, a U.S. Treasury survey showed. Yet Asia has a poor record of protecting its assets stranded overseas when the cycle turns. In the 1990s, Japanese investors incurred significant losses, primarily on property. During the 2008 crisis, a range of Asian sovereign wealth funds and high net-worth individuals lost heavily on advanced economy shares, real estate, and mortgage-backed and structured securities.The desire to invest overseas partly reflects concern about political risk and governance at home. But leaving familiar territory brings other risks.Distance, language and cultural differences can put Asian investors at a disadvantage when it comes to information. As a result, investors often rely too heavily on intermediaries whose interests don’t align with their own.Their main failing, though, is a bias toward certain assets. In an echo of the ill-fated Japanese purchases of Rockefeller Center and the Pebble Beach golf course in the 1980s, Asian investors are buying prime office buildings in New York and London. Swanky apartments are quickly snapped up in world cities, especially by Chinese buyers.Lacking cozy domestic informational networks, Asian investors are particularly susceptible to chasing name asset managers or fashionable businesses. That restricts their options since the best funds are frequently closed to new arrivals. Managers often can’t repeat past results. Inadequate expertise frequently leads to unwise choices. In the run-up to 2008, Asian banks and investors suffered losses on purchases of structured products and collateralized debt obligations, or CDOs. High net-worth and retail segments are buying again. Japanese banks have purchased up to 75% of AAA tranches of collateralized loan obligations, and perhaps one-third of all CLOs, which have common features with CDOs.Where investments are leveraged, they must be financed by borrowing dollars and euros in wholesale markets. Losses may create difficulties in rolling over funding. As in 2008, forced sales and the lack of trading liquidity will accelerate declines in prices.Why look abroad at all? There is a mismatch between Asian savings and the size of domestic capital markets, which are marked by low returns, a smaller range of investment products and limited local expertise. The regional rivalries between Singapore, Hong Kong, Shanghai, Mumbai and Tokyo and a bias toward real industry have hampered the development of financial services.Asia lacks quality indigenous banks such as JPMorgan Chase & Co. or The Goldman Sachs Group Inc., or asset managers such as BlackRock Inc. or Pacific Investment Management Co. Most financial institutions are domestically focused. In 2018, assets under management at Asian hedge funds fell 10% to just over $100 billion, a mere 3% of the global total. Private wealth management remains the preserve of Western firms.Asia’s high savings are a global anomaly, driven by rising incomes, a culture of thrift and minimal social safety nets. Governments need to move with greater determination to enable more savings to be absorbed locally. The timing may be right as the world is tilting more toward national interests and self-sufficiency.The first step must be to accelerate development of capital markets to boost size, depth, liquidity and investment choices. Revised listing and issuance rules, harmonized pan-Asian regulations, breakups of family dominated conglomerates, and partial or full privatization of key state-owned firms would improve market depth. Changes in rules and tax incentives should encourage local pension funds or insurance companies to adopt stable, long-term investment practices.Second, the creation of world-class financial institutions and skilled asset managers needs to be a priority. To attract the best and brightest, limited career choices and pay that lags behind international levels need to be addressed. State-sponsored financial skills training and accreditation systems should be improved. A system of mutual recognition of qualifications would increase labor mobility.Finally, retaining capital within Asia requires improving confidence in the security of savings. Key steps include creating independent institutions free from political interference, as well as bolstering the rule of law and transparent and consistent regulations. Singapore and Hong Kong, despite its recent protests, are examples to emulate.Without change, the familiar cycle of exuberant foreign investment and the loss of Asian wealth is likely to be repeated in the next downturn. To contact the author of this story: Satyajit Das at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Satyajit Das is a former banker and the author, most recently, of "A Banquet of Consequences."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- BlackRock Inc.’s wager on Argentine debt maturing 98 years from now suffered a blow this week as the notes sank to a record.The century bonds, sold in 2017, tumbled 29% this week, even after gaining on Thursday and Friday. That’s a big loss for the largest reported holders, which include BlackRock, Royal Bank of Canada, Legg Mason Inc. and Northwestern Mutual Life Insurance Co., according to data compiled by Bloomberg. A spokeswoman at BlackRock, the biggest reported holder, declined to comment. Representatives at RBC, Legg Mason and Northwestern Mutual didn’t respond to requests for comment.One silver lining, naturally, is that investors have almost a century for prices to recover. Yet a lot can happen before then. Concern that opposition candidate Alberto Fernandez could return populist policies to Argentina led to a surge in the cost to protect the bonds against losses, now implying an 80% probability of default in the next five years, data compiled by Bloomberg show. The nation had its credit rating cut further into junk on Friday by Fitch Ratings, which said Argentina is at “substantial” risk of default.“Lending money to Argentina for 100 years at 7% gets you a gold-plated ticket to the funny farm,” said Jim Craige, the head of emerging markets at New York-based Stone Harbor Investment Partners, who holds the nation’s debt but not the century bonds.An actuarial table created by one legal expert estimated that Argentina would have to restructure the century bond eight times before maturity, according to Hans Humes, chief executive officer of New York-based Greylock Capital and co-chair of a creditor committee during the nation’s last debt crisis.Mauricio Macri’s government sold the 100-year bonds in June 2017, trumpeting the arrival of an administration packed with Wall Street veterans who could transform a serial defaulter into an island of financial stability.That optimism didn’t last long. The notes tumbled in the first half of 2018 amid a sell-off in the peso and declining economic activity. The bonds came back into vogue in recent months as a record stockpile of negative-yielding notes pushed investors into riskier securities. Macri’s shocking defeat in Sunday’s primary turned the tide once more.(Adds Fitch downgrade in fourth paragraph)\--With assistance from Aline Oyamada.To contact the reporter on this story: Ben Bartenstein in New York at email@example.comTo contact the editors responsible for this story: Julia Leite at firstname.lastname@example.org, Alec D.B. McCabeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The world of private equity involves some of the world's most prominent asset managers. On Aug. 9, BlackRock (NYSE:BLK) closed a deal to invest $875 million for a 30% stake in Authentic Brands, the owner of Sports Illustrated, Nine West, Juicy Couture and many others. The investment was the first from the asset manager's new private-equity fund, Long Term Private Capital, which finished raising $2.75 billion in April from several cornerstone investors. Authentic Brands is the fund's first significant investment. InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhat makes BlackRock's private equity fund different is that it intends to make investments for the long haul. * 10 Cheap Dividend Stocks to Load Up On "For institutional investors who want equity exposure, there's a need for an additional type of investment on the continuum between publicly traded equities and leveraged buyout style private equity - one that is potentially more rewarding than public equities but less risky than highly-leveraged buyouts," said Mark Wiseman, Chairman of BlackRock's alternative investors division in April. Most private equity firms buy a company, add leverage to help pay for the acquisition, find some growth either organically or through bolt-on purchases, and then sell it of five to seven years later for several times the original equity investment. Private equity investing can be very lucrative. However, unless you've got billions to invest, many of the best opportunities are unavailable to the retail investor. To gain access to these private equity deals, there are some ways a regular Joe can do it. Here are seven options on how to invest in private equity without being a billionaire. Ways to Play Private Equity: BlackRock (BLK)Source: Shutterstock For those investors who aren't familiar with BlackRock, it's one of the largest asset managers in the world with $6.8 trillion in assets under management (AUM) as of the end of June. It operates iShares, the largest ETF provider in the world, with $2 trillion in AUM. iShares provides ETFs at relatively inexpensive management expense ratios. However, when you have $2 trillion in assets to generate fees from those ETFs, the revenues accumulate pretty quickly. In BlackRock's Q2 2019, iShares ETFs accounted for 39% of the company's base fees in the quarter. The company's ongoing foray into alternative investments such as private equity is going to take a long time to catch up to iShares' fee generation. In the second quarter, alternative investments accounted for just 8% of BlackRock's $2.9 billion in base fees.So, if you buy into BLK stock because of its Long Term Private Capital Fund, it's important to remember that it's but a small piece of the BlackRock pie; albeit a very interesting and innovative approach to private equity investing. Buying into BlackRock is a great way to play private equity while still hedging your bets. Brookfield Business Partners (BBU)Brookfield Business Partners (NYSE:BBU), the private equity arm of Toronto-based Brookfield Asset Management (NYSE:BAM), announced Aug. 13 that it was buying Genworth Financial's (NYSE:GNW) 57% stake in Genworth MI Canada, one of Canada's largest mortgage insurance providers. Brookfield is paying C$48.86 a share for the C$2.4 billion controlling interest. Genworth MI Canada is one of just three companies that provide mortgage insurance in Canada. This is the kind of deal Brookfield likes to make. It's paying a reasonable price for an asset that's got a lot of upside outside of Canada. "This hints at potential global expansion of MIC (Genworth MI Canada) operations … which could drive enhanced growth and profitability," National Bank of Canada analyst Jaeme Gloyn wrote in a note to clients. Under Genworth Financial's ownership, the Canadian unit was unable to operate in any countries where the parent operated. Now, it will be able to head south with a strong financial backer in its corner.Brookfield is known for adding value to its investments while remaining patient about its exit. The company will do what needs to be done to deliver excellent returns for shareholders. * 10 Stocks Under $5 to Buy for Fall BAM is one of my favorite stocks to hold forever because they understand capital allocation better than most. Blackstone Group (BX) Source: Shutterstock New York-based Blackstone Group (NYSE:BX) is one of the world's largest alternative asset managers with $512 billion in assets under management. On July 1, it completed its conversion from a publicly-traded partnership to a corporation. The company made the switch to make it easier for investors to own its stock. By converting, investors no longer need to file a Schedule K-1 for their taxes, making the paperwork from the investment far less cumbersome.Of the 150 largest U.S. public companies, Blackstone ranks first in terms of its long-term 10-year growth rate for revenues and earnings as well as its pre-tax margin and dividend yield. So, despite being one of the best-run businesses in the country, its partnership structure limited the market for its stock.For example, 58% of the largest 150 companies referenced above are included in U.S. long-only and index ETFs. By comparison, BX is only included in 21% of the U.S. long-only and index ETFs. That's all because it wasn't a corporation.As far as private equity goes, Blackstone has $171 billion in assets under management. Those assets are invested in more than 97 companies with combined revenues of more than $76 billion and employing more than 400,000 people around the world. At the current moment, it has $75 billion in available capital. Onex (ONEXF)Source: Shutterstock One of two Canadian private equity companies on the list, Onex (OTCMKTS:ONEX) has been in the news a lot lately for its acquisition of WestJet Airlines (OTCMKTS:WJAFF), Canada's second-largest airline behind Air Canada (OTCMKTS:ACDVF).On Aug. 13, the Canadian Competition Bureau OK'd the transaction. Previously, Canada's Transport Minister, Marc Garneau, approved the C$3.5 billion deal. Originally, Onex was prepared to pay C$35.75 a share. However, the ongoing troubles with the Boeing 737 Max reduced the price by C$4.75 to C$31. The deal's expected to be approved by the remaining Canadian regulators who have yet to render a decision. The transaction should close in the fourth quarter of 2019.Although WestJet is one of Onex's highest-profile acquisitions in its 35-year history, it manages more than C$39 billion in assets including C$6.9 billion of its own capital. Of the $39 billion, approximately 69% is invested in private equity with the rest in cash (18%), credit (12%) and fixed-income investments, as well as a small amount in real estate (1%). Onex's private equity investing has generated a gross multiple of capital invested of 2.6 times and a 27% gross IRR (internal rate of return) on realized, substantially realized, and publicly traded investments. * 15 Growth Stocks to Buy for the Long Haul Like Brookfield, it's a patient investor. Compass Diversified Holdings (CODI)Compass Diversified Holdings (NYSE:CODI) is by far the smallest of the private equity stocks listed in this article with a market cap of just $1.1 billion.Not only does CODI take majority-ownership stakes in middle-market businesses in North America, it also provides debt and equity for its subsidiaries to grow. It currently owns eight different companies.2019 has been a hectic year for CODI selling two of its businesses for large amounts. On July 1, it announced the sale of Clean Earth, one of the largest specialty waste processors in the U.S, for $625 million. The sale netted Compass Diversified $200 million which it used to eliminate the outstanding debt on CODI's revolving credit facility. In February, CODI sold Manitoba Harvest Hemp Foods to Tilray (NASDAQ:TLRY) for $316.6 million. Manitoba Harvest gives Tilray a big piece of the U.S. hemp foods market. Compass Diversified will turn around and find one or two new platform companies on which to grow. Once upon a time, CODI owned Fox Factory Holding (NASDAQ:FOXF), makers of bike and truck shocks, until it took FOXF public in 2013. With just eight businesses owned, it has a much easier job managing its investments. If you're patient, CODI will reward you over the long haul. Ways to Play Private Equity: Invesco Global Listed Private Equity ETF (PSP)The first of two available private equity ETFs, the Invesco Global Listed Private Equity ETF (NYSEARCA:PSP) has an exceptionally high management expense ratio of 2.03%. The ETF tracks the performance of the Red Rocks Global Listed Private Equity Index. The index typically invests in 40 to 75 private equity companies including BDCs, MLPs, and other investment vehicles. Currently, PSP has 68 holdings with 41% allocated to U.S. companies, another 16% to the UK, and Switzerland at 6%. If you like to invest in mid-cap and small-cap stocks, PSP allocates just 29% to large caps. Of its top 10 holdings, one of the companies listed in this article (Blackstone) is held in its largest holdings. Brookfield Business Partners, Onex, and Compass Diversified are also held. Over the past 10 years, PSP has generated an annualized total return of 9.5%, which is a decent, if not great return over the period. * 10 Stocks Under $5 to Buy for Fall If you're wondering why the fee is so high, it incorporates the fund fees of the 68 holdings in the ETF. The management fee itself is 0.50%. ProShares Global Listed Private Equity ETF (PEX)Not nearly as large an ETF in terms of assets with just $18.8 million, the ProShares Global Listed Private Equity (BATS:PEX), the ETF tracks the performance of the LPX Direct Listed Private Equity Index, a diversified global portfolio of listed private equity companies whose primary business is direct investments in private enterprises. It currently owns 30 stocks, including Onex, which is the ETFs second-largest holding, accounting for almost 10% of the entire portfolio. The largest holding in PEX is Ares Capital (NYSE:ARCC), a BDC with nearly $8 billion in market cap. It's hard to believe, but PEX is 75 basis points more expensive than PSP at 2.78% annually. Excluding the acquired fund fees from the ETFs 30 holdings, it charges 0.60%. There's no mystery why private equity ETFs haven't grown their net assets beyond $220 million. You're probably better off just putting money into an ETF that holds some of the companies listed above. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 7 Ways to Play Private Equity Without Being a Billionaire appeared first on InvestorPlace.
(Bloomberg Opinion) -- BlackRock Inc., the world’s largest money manager, has a who’s who of former central bankers under its umbrella. And they’ve come out with a bold plan for addressing what appears to be the end of the line for conventional monetary policy.Philipp Hildebrand, the former Swiss National Bank president, is now vice chairman at BlackRock, where he oversees the BlackRock Investment Institute. Within the institute, Stanley Fischer, the former Federal Reserve vice chairman and former governor of the Bank of Israel, is a senior adviser, and Jean Boivin, the former deputy governor of the Bank of Canada, is the global head of research. Along with Elga Bartsch, the head of macro research, they published a report Thursday ahead of the Kansas City Fed’s Economic Policy Symposium in Jackson Hole, Wyoming, that advocates for more explicit coordination between central banks and governments when economies are in a recession so that monetary and fiscal policy can better work in synergy. They make clear from the onset that so-called helicopter money — that is, having central banks just blanket the citizenry with cash in the hopes that it will encourage spending and investment — isn’t a realistic option. But their suggestion for a “Standing Emergency Fiscal Facility” starts to head in that direction.Here’s the general outline of their proposal:• The central bank would activate the SEFF when the interest rate channel is tapped out and a significant inflation miss is expected over the policy horizon.• The central bank would determine the size of the SEFF based on its estimates of what is needed to get the medium-term trend price level back to target and would determine ex ante the exit point. Monetary policy would operate similar to yield curve control, holding yields at zero while fiscal spending ramps up. The central bank would calibrate the size of the SEFF based on what is needed to achieve its target.• Independent experts would decide how best to deploy the funds to both maximize impact and meet strategic investment objectives set by the government.This sounds perfectly fine in theory. This sort of facility would certainly allow monetary and fiscal policy to move more quickly and nimbly than if they were purely separate from each other. And it’s becoming clear to all involved in financial markets that simply tinkering with interest rates at these ultra-low levels doesn’t do much to bolster the real economy. The risk is a persistent “liquidity trap,” given that monetary policy is constrained by an effective lower bound.But, as you might expect from a group of former central bankers, it relies heavily on the assumption that a group of experts knows how to fine-tune a complex economy.Notice that the size of the emergency fund would be “based on its estimates of what is needed to get the medium-term trend price level back to target.” It’s an open question whether members of the Fed, or the European Central Bank, or the Bank of Japan or others have a feel for what it takes to jump-start inflation. The ECB has tried persistently negative interest rates. The BOJ has tried buying ETFs. You can understand the rationale for taking these steps, given the known tools of monetary policy, but I’m not sure anyone would say they’ve been successful. Granted, they’ve never had a sort of fiscal stimulus at their disposal, but their track record thus far is dubious.Then you have the fact that “independent experts would decide how best to deploy the funds.” Again, it depends on a small group to effectively provide the fiscal boost needed to get the economy on track. I’m not opposed to ramping up fiscal spending on infrastructure or other beneficial projects — in fact I recently advocated for it — but it’s hard to see how politicians will accept standing by and letting this play out without trying to influence the process in a way that benefits their constituents. Policy independence has always been a two-way street.Speaking of the process, the authors go so far as to describe how this facility could work in various countries. In the U.S., they say, “Congress could create a special Treasury account at the Fed and authorize FOMC to fill the account up to a pre-set limit.” It’s similar in Japan, where the “BOJ could credit a government account at the central bank.” Again, not helicopter money — but also not all that far from it. Hildebrand said in a Bloomberg Television interview that the goal is to get money directly into the pockets of consumers and corporations.Targeted fiscal policy is the great unknown and seems to be gaining traction as something of a cure-all for the failures of monetary policy to sustainably lift growth after the financial crisis. As with anything purely theoretical, it’s anyone’s guess whether even the most sensible plans will live up to the hype.Either way, BlackRock’s former central bankers are convinced that monetary policy as they knew it will be largely useless in the next recession. Especially considering that the theme of next week’s conference in Jackson Hole is “Challenges for Monetary Policy,” investors ought to treat this proposal for “going direct” with coordinated fiscal policy as a rough draft of what the future might hold.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
In his "Selloff Strategies" segment of Mad Money, Jim Cramer took calls from Cramerica to help them look at Wednesday's decline logically and not from a place of fear and panic. In this daily bar chart of BLK, below, we can see a double top-like pattern in May and July. The On-Balance-Volume (OBV) line has moved up and down with the price action from late December and has declined slightly the past four weeks.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The world’s largest asset manager says European authorities should consider funneling money straight to households and businesses if the current economic slowdown worsens.As global central banks exhaust the impact of more traditional tools -- interest rates and asset purchases -- “the next step needs to be more than just more of the same,” BlackRock Vice Chairman Philipp Hildebrand said in a Bloomberg TV interview.He added that the euro area would likely be the first major economy to see radical measures such as “putting money directly in the pockets of consumers or corporates.”That’s a concept often referred to as “helicopter money,” which Nobel Prize-winning economist Milton Friedman came up with in the late 1960s. Hildebrand shrugged the term off as “sort of a catch phrase,” arguing that central banks simply need to pick a different approach.“The obvious one is the European Central Bank because they are closest at the point where more of the same simply won’t work anymore,” said Hildebrand, who was president of the Swiss National Bank from 2010 to 2012.Major central banks have tried for years to boost inflation by buying government bonds, and in the case of the ECB, even introduced negative interest rates that charge banks for deposits to encourage them to lend.At the moment, policy makers are exploring the possibility of further rate cuts and renewed asset purchases, though analysts have questioned how much more they will be able to do given the challenges such measures pose for bank profitability.So far, many European governments have been unwilling or unable to pursue fiscal stimulus. But with negative economic news piling up over recent weeks, some -- including Germany -- seem to be on the verge of shifting their stance.“You will see a much closer coordination between fiscal and monetary policy as a critical element of such a next policy regime,” Hildebrand said.To contact the reporters on this story: Carolynn Look in Frankfurt at email@example.com;Francine Lacqua in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Paul Gordon at email@example.com, Jana RandowFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
BlackRock, the world's biggest asset manager, has rescheduled its Asia Media Forum set for next month in Hong Kong as protesters disrupted operations at the city's airport for a second consecutive day on Tuesday.The invitation-only forum, in which journalists meet global and regional executives from the company, was set to take place during the first week of September. It has now been rescheduled to February 2020, BlackRock said."The power of this convening lies in the diverse range of perspectives brought together from throughout the region, and we are adjusting the schedule so that as many partners as possible from across Asia are able to join," the company said, without citing the protests.BlackRock executives and employees have continued to travel to Hong Kong on a regular basis, including for client meetings and discussions, according to a person familiar with the matter.A number of events, ranging from consumer expositions to tribute concerts, have been cancelled as protests and civil unrest over the past two months have disrupted transit, blocked roads and caused flight cancellations.Stuart Bailey, the chairman of the Hong Kong Exhibition and Convention Industry Association, said earlier this month that the second half of the year could be more challenging for its members. Check-ins suspended as protesters swarm Hong Kong airport for second dayProtesters began amassing in the streets on weekends in June in opposition to a controversial extradition bill that would have made it easier to send criminal suspects to mainland China. The protests have since evolved into a grievances over the city's leadership and the response of the city's police force to the demonstrations.Clashes between police and protesters have become increasingly violent in recent weeks, with police using tear gas and rubber bullets.The protests have forced businesses to close on multiple weekends in a variety of neighbourhoods across Hong Kong and are beginning to affect parts of the city's economy, particularly the airline, hotel, property and retail sectors.Here was the scuffle in T2 @SCMPNews pic.twitter.com/YLX60cwCTP" Danny Lee (@JournoDannyAero) August 13, 2019Cathay Pacific said last week that it had seen a double-digit drop in advance sales for travel to Hong Kong in the coming months because of the social unrest. Intercontinental Hotels Group, the owner of Holiday Inn and Crowne Plaza hotels, also said its revenue per available room in Hong Kong was down in the second quarter because of the political dispute.The American Chamber of Commerce in Hong Kong said last week that smoothly functioning commerce in the city was "fundamentally important" to its members. Smooth commerce in Hong Kong 'fundamentally important': AmChamProtesters had occupied the arrivals hall at Hong Kong International Airport beginning on Friday, but thousands swarmed the departures hall on Monday after violent clashes over the weekend that saw police storm two MTR stations in pursuit of retreating protesters, forcing airport operations to be suspended later that afternoon. Additional flights were cancelled on Tuesday and the Airport Authority was forced to suspend check-in for all departing flights in the afternoon as thousands of protesters occupied the check-in area.Riot police and protesters then clashed violently at the airport on Tuesday night, as airport officials secured a court order to have demonstrators removed from the terminal building. Flight operations have resumed at the airport on Wednesday morning.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
Every board member plays a role in corporate governance - from IT leaders to corporate secretaries and directors. Learn how you can pave the way toward better governance and discover what a digitized board means for organizations. Download the guide from Nasdaq, Inc.
The new ETFs expand the suite to now offer Income Balanced, Conservative Balanced and Equity Portfolios TORONTO, Aug. 13, 2019 -- Today, RBC iShares expanded its asset.
On Sunday, August 11th, BlackRock (BLK) announced that it would be purchasing a roughly 30% stake in privately held Authentic Brands for $875 million, a deal that values the company at over $4 billion. Shares closed down 2.62% in trading Monday.
Rite Aid, CBS, Viacom, BlackRock, Ford and Anheuser-Busch InBev are the companies to watch.
ABG's other investors include Leonard Green & Partners, General Atlantic, Lion Capital, Simon Property Group, Brookfield Properties’ retail group and former NBA star Shaquille O’Neal.
U.S. stock futures are lower as fears of a global recession weigh on investors amid uncertainty over the trade conflict between the U.S. and China; Goldman Sachs doesn't see a trade deal between the world's two largest economies before the U.S. presidential election in 2020; Walmart, Cisco and Nvidia report earnings this week.