This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BlackRock, Blackstone Worth the Price in 2014

Stocks in this article: BLK BX AAPL XOM GE BCS SEAS HLT

NEW YORK (TheStreet) -- Few investment sectors capture my imagination like the one that includes BlackRock (BLK) and The Blackstone Group (BX). These two powerhouses are all about managing assets, investing those assets profitably, and getting paid well for those services.

BlackRock has over $8 trillion (trillion, with a "t") under management or advisement which makes it bigger than any sovereign wealth fund, private-equity firm, bank or insurance company on the planet.

According to The Economist, if you take all the world's private-equity and hedge funds and combined their assets they'd be about the same size as the total assets (primarily in the form of equities) controlled by BlackRock. Makes sense when one realizes that it's the biggest shareholder of 15 of the world's 30 largest companies, including Apple (AAPL), Exxon Mobil (XOM) and General Electric (GE).

Since it acquired a nice chunk of Barclays (BCS) investment products division, BlackRock has become a tour-de-force in exchange-traded funds and other passive investment products. The Economist pointed out that these products now account for about 64% of BLK's assets under management.

What's more, BlackRock's colossal Aladdin risk-management data center has some form of influence over 170 pension funds, insurance companies, banks, endowments and the like. BlackRock also (for a fee or entry price) lets money managers who oversee an additional $11 trillion use this mindboggling risk management platform.

So the good news for BlackRock and its shareholders is that, according to the firm, a meaningful percentage of "companies, organizations, and global governments come to BlackRock for unbiased advice on complex capital market exposures, help developing investment strategies and comprehensive investment management technology, all anchored by [their] core expertise in understanding and managing risk [Aladdin-style]."

The scary news for all investors is that if about 7% of the world's $225 trillion of financial instruments is impacted by folks who manage multiple risks using the same risk management information system, what if Aladdin doesn't end up being accurate on one of more of the big risks criteria. Would this be a recipe for yet another worldwide financial fiasco?

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs