Tue, Feb 21, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

BlackRock announces closure of Absolute Return Strategies

Thursday, June 02, 2011
Opalesque Industry Update – The world’s largest asset manager BlackRock has announced plans to wind down its closed-ended Absolute Return Strategies fund of hedge funds over the widening discount of its Net Asset Value (NAV).

In a report by the International-Adviser.com, the New York-based company with $3.65tln in assets under management, said it is closing down the fund three years after its May 2008 launch. BlackRock’s Absolute Return Strategies Ltd now has an estimated £130m in NAV.

Commenting in the firm’s closed-ended report in April, the fund’s Chairman Colin Maltby said the discount on the strategies NAV has widened significantly despite efforts taken to limit it.

Maltby said in the report, “Despite the strong positive return delivered by the company's [BlackRock Absolute Return Strategies Limited] NAV over the past two years and the reduction in the supply of the company's shares through the reverse auction tender offer and the on-market share repurchase, the share price discount to NAV of each share class has continued to be relatively wide.”

He added that the fund's board would continue to find various ways to address the discount which would be beneficial to all shareholders.

But board has decided to wind down the fund and pointed out that investors are still concerned with the level of discount as well as the relative small market capitalization of the company.

BlackRock firm equiy update
Meanwhile, Goldman Sachs on Wednesday upgraded the credit ratings status of BlackRock from “Neutral” to “Buy” with a $240 price target. The unexpected upgrade suggested a a 17% rise to the stock’s Tuesday closing price of $205.56.

An analyst at Goldman Sachs was quoted by Dividend.com as saying, “In our view, BLK’s flows are poised to accelerate, strong FCF and capital generation implies further stock buybacks of insider holders, and current valuation undervalues the secular attraction of BLK’s well-diversified AuM base.” BlackRock shares rose $2.43, or +1.2%, in Wednesday's trading.
Precy Dumlao

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. With $54bn in assets, Philippines is ready for hedge funds, alternative investment products[more]

    Komfie Manalo, Opalesque Asia: With the country's outstanding fund management industry at $54bn and growing, the Philippine market and its investors are ready to invest in "more sophisticated" asset management products, like hedge funds and alternative investments, said Deanno J. Basas, presi

  2. SoftBank to buy Fortress Investment for $3.3bn[more]

    From Reuters.com: Japan's SoftBank Group Corp on Wednesday said it has agreed to buy Fortress Investment Group LLC for about $3.3 billion, looking to add investment expertise as it prepares to launch the world's largest private equity fund. The all-cash deal is SoftBank's first major investmen

  3. ...And Finally - Truth in advertising[more]

    From Newsoftheweird.com: Girl Scout Charlotte McCourt, 11, of South Orange, New Jersey, saw her sales zoom recently when she posted "brutally honest" reviews of the Scouts' cookies she was selling -- giving none of them a "10" and labeling some with dour descriptions. She was hoping to sell

  4. Europe - Brexit - Updated legal guide, Euro exchange rates set to tumble as hedge fund's super computer predicts Marine Le Pen will be next French president, Swiss fund market hits all-time high[more]

    Brexit - Updated legal guide From Herbertsmithfreehills.com: When we began analysing in depth the possibility of Britain exiting the EU (Brexit), 18 months prior to the June 2016 referendum, the business consensus was very much that Brexit was a remote prospect that either would never hap

  5. People - Gramercy appoints Bradshaw McKee as managing director of Capital Solutions, Trump taps Cerberus's Feinberg to lead intelligence review[more]

    Gramercy appoints Bradshaw McKee as managing director of Capital Solutions Gramercy Funds Management LLC, a $5.8 billion dedicated emerging markets investment manager, today announced the appointment of Bradshaw McKee to the position of Managing Director, Capital Solutions and Distressed