Now that BlackRock (BLK) is the world's biggest asset manager, it sends the SEC more than 1,500...

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Tom Armistead Comments (4558)
 
It looks like Blackrock controls something like 5.5 or 6% of the average company it invests in.

Some of the 13Gs on companies I invest in had as much as 14% owned by Blackrock, I have been questioning whether that is a good sign for the companies involved, does Blackrock know something that causes them to take the larger positions?
6 Feb 2010, 08:20 AM Reply Like

GreenMom Comments (128)
 
First, never invest in a company sinply because you THINK a larger, wiser investor is investing. 13Gs are just one tool. You must do your own research.

If Blackrock suddenly has to liquidate for some internal reason, or decides to sell a major block of its holdings in one company, it will slam that stock price, and we get no warning.
6 Feb 2010, 08:35 AM Reply Like

Duude Comments (3274)
 
Lets not lose sight of the fact that Blackrock owns the largest share of the ETF market. A lot of these positions are representative of passive index holdings. Their ownership isn't a sign of an investment decision nor should one be unnecessarily concerned about sudden liquidation any more than they should worry about a passive index liquidating the same position.
6 Feb 2010, 10:01 AM Reply Like

Tom Armistead Comments (4558)
 
Good explanation, thanks
6 Feb 2010, 10:27 AM Reply Like

GreenMom Comments (128)
 
Duuuuuude, Duude! Your comment is why I love SA so much! GREAT point. So, if Tom is following BLK's lead because he thinks that they own because of investment decisions, he's mistaken. And their liquidation is not done by decisions, it's algos and robot trading doing the thinking, so I'm also mistaken.

They'll make transaction commissions no matter if market is up or down, and have visibility that we can only dream of for their own hedging. Got it. The greatest risk I see is that if they are also a prop desk puppet for the govt, and the govt is trying to push a waterfall back with a squeegee one day, BLK somehow gets caught holding a bag that is even too heavy for them.
6 Feb 2010, 10:27 AM Reply Like

mgmdr2000 Comments (20)
 
no wonder why BLK made deal with big investment houses to let their customer buy /sell ETF ,commision free..another gimmick for encouraged distribution
6 Feb 2010, 12:14 PM Reply Like

Neil459 Comments (2640)
 
Think "dark pool", now you can see more clearly.
6 Feb 2010, 05:00 PM Reply Like