BlackRock just lost the largest amount of money lost by a single firm over a six-month period
(twitter.com)
🔍 Notable
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My point is basic arithmetic.
If Black Rock has $10T in assets under management and Vanguard has $8T in assets under management, and they both make the same investment decision in January to invest in the S&P500 index and leave their money invested until July, the S&P500 index lost 20% during that time.
So Black Rock lost $2T and Vanguard lost $1.6T.
This headline is basically saying, "😱 Black Rock lost more money than Vanguard!" That's true, but the insinuation is that the greater loss is due to poor investment decisions. But in this scenario, both companies made the same exact investment decision. Black Rock just lost more, because they had more to start with.
My point is that the headline is using shady arithmetic to make a story where there is no story. And this board is jumping at it because of a general dislike for Black Rock. I'm not saying Black Rock is a good or bad company. There's probably a lot of shitty people there, especially at the top. But this headline is a nothing burger.