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From Kirsten Bischoff, Opalesque New York:

Reporting its second quarter earnings on Tuesday, BlackRock posted $239m profit, an improvement of 117% over 1Q09, but a 16% drop year over year. The firm gained over $15bln in net new business during the second quarter and a statement from the firm said "as of July 17, 2009, our pipeline of wins funded or to be funded totaled $45.7bln almost all of which was in long-dated investment products."

Stabilization in alternatives and inflows to funds of hedge funds 2Q09 earnings reflected almost half a billion dollars flowing out of BlackRock hedge funds. Outflows and poor hedge fund performance were reflected in the firms $40m drop in fees on private equity and equity and fixed income hedge funds. Hedge funds across the industry are still underwater from October 2007 peaks, and according to the HFRI Fund Weighted Composite Index, the industry still requires an additional 14.7% gain to balance out.

During the earnings call, BlackRock Chairman and CEO Laurence D. Fink noted that although alternatives were still seeing outflows into the third quarter, he sees a more robust outlook for the funds of funds products in both private equity and hedge funds. The firm has been seeing more RFPs and new requests for hedge fund investments, and this, along with acknowledgement that investors or cautiously looking at higher levels of risk than they have been over the last few......................

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