BlackRock Rides Wave of Client Cash Inflows MOVERS MARKETPLACE By Bloomberg

By Sree Vidya Bhaktavatsalam

BlackRock, the largest publicly traded fund manager in the United States, exceeded analysts’ earnings estimates in the third quarter as investors deposited $41 billion.

Net income climbed to $255.2 million, or $1.94 a share, from $18.9 million, or 28 cents, the company said Wednesday. Excluding one-time costs and gains, BlackRock earned $2.29 a share, beating the average Bloomberg estimate of $1.90 a share.

Income from performance fees jumped eightfold to $149.4 million because of alternative investments like hedge and real estate funds.

BlackRock shares rose as much as $14.59 to $198.78 in afternoon trading on the New York Stock Exchange, the most since February 2006. They have advanced 30 percent this year.

Investors, shaken by volatility on bond and stock markets during the quarter, deposited $30.2 billion into cash-management products.

“Clients are looking at more alternative strategies, but at the moment, they are looking for safe havens,” Laurence Fink, chief executive of BlackRock, said Wednesday during a conference call.

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Sree Vidya Bhaktavatsalam

Originally published by Bloomberg News.

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