Investment management giant BlackRock (BLK) is up first this week. With close to $3.7 trillion in assets under management, BlackRock is by far the biggest manager in the world. It's not just size that matters, where the money's stashed is also important, and BLK's allocations are attractive.
Currently, less than half of BLK's funds are in equities, around a third is in fixed income, and the rest sits in alternatives. With investors still feeling squeamish about stocks, that limited equity allocation is nice. And since BlackRock got its start as a fixed income shop, it's been able to take full advantage of the treasury rally that's been roaring as risk-averse investors poured all of their assets into risk-free government debt.>>5 Dividend Winners Better Than Treasuries Part of the trick is going to be in convincing investors to keep their money at BlackRock when they eventually make the move over to equities again. With inflation outpacing the paltry return on Treasuries right now, it's just a matter of time. The fact that BLK gets most of its assets from other institutions should help keep those assets in-house; the group that tends to be less fickle and more willing to stay in a fund than nonprofessionals. That said, if BlackRock is willing to court more retail investors, it'll have a big growth avenue ahead of it in the next few years. We're betting on shares of this asset manager this week. BlackRock was also featured recently in "5 Stocks With Big Insider Buying."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV