BlackRock Bets on Momentum Strategy Comeback

Even as the momentum strategy has become “deeply unpopular” from its long stretch of underperformance, the worlds largest money manager is “staying the course” with the strategy, according to an article in Bloomberg. “It’s a contrarian position, to say the least,” the article says, adding that momentum has become corelated with defensive names and “less in sync with those that tend to power rallies like tech” According to Holly Framsted, head of U.S. factor ETFs… Read More

BlackRock’s New Suite of Funds to be Led by Robots

Blackrock Inc., the world’s largest asset manager, is “turning to robots to drive its latest push into active exchange-traded funds,” according to a recent article in Bloomberg. The article reports that, according to a recent statement by the firm, the funds (under the brand “iShares Evolved”) will choose holdings in industries such as technology, innovative health care and media entertainment based on machine learning and natural language processing. According to Jeff Shen, co-head of investments… Read More

BlackRock to Expand Quant Investing

Actively managed funds at BlackRock, the world’s largest fund company, are facing the new reality of quantitative investing, according to this week’s New York Times. The exchange-traded-fund business the firm bought from Barclays in 2009 has seen huge growth, “leaving in the dust the stock pickers who had spurred an earlier expansion for the firm,” according to the article. BlackRock has therefore adopted a plan to consolidate several of its actively managed funds “that rely… Read More