|
Briefing
|
- AI Stock Pickers – World’s largest hedge fund, Blackrock, to use big data and artificial intelligence to pick stocks in actively managed equities business
- Restructuring and Job Losses – Organization restructuring will result in job losses of seven stock portfolio managers plus several dozen employees
- Lower Priced Funds – Lower cost stock funds managed by computer systems will be introduced to BlackRock’s Main Street customers, option previously available only to large institutional investors
- Recent Equity AUM Woes – Experienced dip in active equity assets under management, from $317.3 billion as of December 2013 to $275.1 billion by end of December 2016
- Market-Wide Withdrawals – Investors pulled out $423 billion worth of actively managed stock funds and poured $390 billion in less expensive index funds in 2016
|
|
Accelerator
|
|
|
Market Disruption
|
|
|
Business Model and Practices
Business Model
and Practices
|
|
|
Sector
|
Financial Services
|
|
Organization
|
BlackRock Inc.
|
|
Source
|
-
"BlackRock's US-based active funds post record 2016 withdrawals: Morningstar,"
-
"BlackRock positions equity investment platform for future of active management,"
-
Durben, T., "The robots win: BlackRock bets on computers over human stock pickers, fires dozens",
-
Thomas, L., "At BlackRock, machines are rising over managers to pick stocks",
-
AcceleratingBiz analysis
|
|
Original Publication Date
|
March 28, 2017
|
