BlackRock Hits Record $12.5 Trillion in Assets Amid Tariff Chaos
(Bloomberg) -- As Larry Fink reshapes BlackRock Inc. beyond public markets, its latest results show one thing: Expectations for the world’s largest asset manager are going up.
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BlackRock shares fell as much as 7% Tuesday and were on track for the worst earnings-day drop in more than a decade, wiping out the bulk of the stock’s 2025 gains. That came after the asset manager reported earnings surpassing the average estimate, in a quarterly performance that most analysts deemed somewhere between solid and strong.
BlackRock “is entering into a new chapter in its growth story,” said Kyle Sanders, an analyst at Edward Jones. “While the past two decades have been marked by the explosive growth in ETFs, the next phase of the firm’s evolution will depend on private markets and technology via Aladdin.”
That shift, echoed across the asset-management industry as firms race to respond to the relentless pressure on fees from low-cost indexing, was on display in the firm’s second-quarter earnings. The company reported a day after BlackRock shares had rallied to a record and some analysts predicted more upside in the months ahead.
Shares fell 5.1% to $1,054.92 at 1:02 p.m. in New York.
TD Cowen analysts led by Bill Katz called the share drop “an overshoot” but cautioned that the path to BlackRock’s long-term story, while intact, is a “bit bumpier.”
The world’s largest money manager took in less client cash than expected, largely because a single large institutional client pulled $52 billion from a low-fee index strategy. Multi-asset and overall fixed-income strategies also had redemptions, while total performance fees were down $70 million from a year earlier. Revenues rose 13% to $5.4 billion from a year earlier, just missing analyst estimates.
Still, BlackRock pulled in money — $68 billion overall — including $22 billion to cash management accounts and $9.8 billion in alternatives and $85 billion in aggregate to ETFs. Client assets under management overall hit a record $12.5 trillion.
“This is just Wall Street, hedge funds, going in an out of the market, and that’s fine,” Fink said Tuesday in a CNBC interview after shares declined. “Long-term, I’m a huge buyer of BlackRock at these prices.”
Fink attributed the share move to investors thinking the company expenses are high, which he said was intentional as it integrates three major acquisitions to become a key player in private markets.
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