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Jan 17, 2013

BlackRock profit rises 24 percent on equities demand

Jan 17 (Reuters) – BlackRock Chief Executive Laurence Fink
may finally be proving to skeptics that he was right to spend
$15 billion buying Barclays’ investment business to create the
world’s largest money manager.

The New York-based firm said Thursday that its
fourth-quarter profit increased 24 percent on a 14 percent
revenue gain. Investors poured $47 billion into BlackRock
long-term funds, including $31 billion into higher-fee stock
funds.

Jan 17, 2013

Pay cuts may signal ‘new normal’ on Wall Street

BOSTON, Jan 17 (Reuters) – In the past few days, major
global banks have taken the axe to pay with unusual zeal.

JPMorgan Chase & Co slashed the compensation of CEO
Jamie Dimon, one of the world’s top bankers, by half despite
record earnings in 2012. His crime? Being in charge when an
investment unit ran amok with the botched “London whale”
derivative trades that cost the bank more than $6.2 billion.

Jan 15, 2013

Anti-hacking law questioned after death of Internet activist

BOSTON, Jan 15 (Reuters) – Lie about your identity on
Facebook or delete files from your work laptop before you quit
and you could run afoul of a 29-year-old U.S. computer security
law that some experts say has been changed so often it no longer
makes sense.

The U.S. Computer Fraud and Abuse Act has come under renewed
criticism after last week’s suicide of Internet activist Aaron
Swartz, who could have faced prison time for alleged hacking to
download millions of academic articles from a private database
through a network at the Massachusetts Institute of Technology.

Jan 9, 2013

Big asset managers plan to post money fund values daily

Jan 9 (Reuters) – Three of the biggest managers of U.S.
money market funds said on Wednesday they will start disclosing
fund values each day rather than monthly, a move that could
boost investor confidence and blunt new regulations.

Goldman Sachs Group Inc, JPMorgan Chase & Co
and BlackRock Inc, which together oversee $489 billion
of money market funds, or almost 20 percent of the industry, all
said they wanted to give investors a clearer picture of the
quality of their funds’ holdings.

Jan 9, 2013

Big U.S. banks to post money fund values daily

By Ross Kerber and Aaron Pressman

(Reuters) – Goldman Sachs Group Inc and JPMorgan Chase & Co on Wednesday said they will disclose the value of their money market mutual funds each day rather than monthly, seeking to boost investor confidence and head off new regulations.

The change marks a major shift in the $2.6 trillion industry. Two other large money fund sponsors, Vanguard Group Inc and BlackRock, said they would not increase their disclosures.

Jan 2, 2013

Analysis: Most U.S. funds missed Mexico gains, Brazil drop in 2012

BOSTON (Reuters) – The two biggest financial markets in Latin America swapped their long-held roles in 2012, with Mexico surging ahead and Brazil lagging, catching many U.S. fund investors in the region off guard.

Stocks in Brazil, which had benefited over the past decade from a fast-growing consumer class and Chinese buying of commodities, suffered as the government increased regulation of key sectors of the economy and Asian demand waned. In the third quarter of 2012, Brazil’s economy grew only 0.9 percent from a year earlier, while Mexican growth was 3.3 percent.

Jan 2, 2013

Most US funds missed Mexico gains, Brazil drop in 2012

BOSTON, Jan 2 (Reuters) – The two biggest financial markets
in Latin America swapped their long-held roles in 2012, with
Mexico surging ahead and Brazil lagging, catching many U.S. fund
investors in the region off guard.

Stocks in Brazil, which had benefited over the past decade
from a fast-growing consumer class and Chinese buying of
commodities, suffered as the government increased regulation of
key sectors of the economy and Asian demand waned. In the third
quarter of 2012, Brazil’s economy grew only 0.9 percent from a
year earlier, while Mexican growth was 3.3 percent.

Dec 19, 2012

Vanguard sets record with customer inflows of $130 bln

Dec 19 (Reuters) – Vanguard Group said customers had
invested $130.4 billion in its mutual and exchange-traded funds
during the first 11 months of 2012, beating the fund industry’s
previous annual inflow record.

The flows into Vanguard funds, mostly into equities,
exceeded the previous annual record of $129.6 billion set by
JPMorgan Chase & Co in 2008, according to fund research
firm Strategic Insight. Vanguard’s previous high was $104
billion, achieved in 2007, Vanguard said in a statement on
Wednesday.

Nov 27, 2012

New SEC head faces fights on several fronts, legal straitjacket

BOSTON (Reuters) – Mary Schapiro’s successor as head of the U.S. Securities and Exchange Commission is going to have to hit the ground running.

With an ongoing battle over regulating the $2.5 trillion money market fund industry, some 63 unfinished rule makings required by the 2010 Dodd-Frank Wall Street reform law and continuing fears about market stability and high frequency trading, the new top securities regulator will have a lengthy list of critical issues to address on day one.

Nov 15, 2012

Hedge funds shower love on Green Mountain, Yahoo

NEW YORK (Reuters) – Patrick McCormack, the manager of hedge fund Tiger Consumer Management, decided to bet against rival David Einhorn in the third quarter.

McCormack’s $2 billion fund jumped into two stocks that Einhorn, founder of $8 billion Greenlight Capital Management and one of a handful of savvy traders who can move markets with his “short” calls, has said publicly he is shorting, or betting against.

    • About Aaron

      "Boston-based reporter covering investment management and investing. Previously worked at Businessweek in Boston and at The Industry Standard and Reuters in Washington, D.C."
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