BlackRock's Webb Steps Down From Running $5.7 Billion Hedge Fund

  • Tom Parker takes over the Fixed Income GlobalAlpha strategy
  • Returns average 8.8% since inception in 2006 at largest pool

Tim Webb has stepped down from managing BlackRock Inc.’s biggest hedge fund, the $5.7 billion diversified fixed-income strategy, handing control to his deputy Tom Parker.

Webb, who ran the hedge fund for five years, also left his post as chief investment officer of the model-based fixed income group to devote more time to leading the firm’s international fixed-income business, said Brian Beades, a spokesman for BlackRock. Parker, who was deputy CIO for the hedge fund and model-based unit, took over as CIO for both, said Beades.

Parker’s Fixed Income GlobalAlpha Fund, which uses more than 50 models to invest across markets, is part of the world’s largest asset manager’s $31 billion hedge fund business. The unit, which started its first strategy in 1996, manages more than a dozen funds including a $2 billion fundamental global fixed-income pool and a $1.3 billion multi-strategy fund.

The GlobalAlpha Fund invests in liquid instruments and strategies such as mortgages, corporate credit, currencies, emerging markets, interest rates and securitized assets, according to a report to investors obtained by Bloomberg. The fund produced annualized returns of 8.8 percent since inception in 2006, according to the report.

Webb’s Expanded Role

The management transition formalizes Parker’s ongoing role as Webb’s duties have expanded for the last five years. Webb helps lead BlackRock’s fixed-income business with Rick Rieder and Kevin Holt. Quintin Price, who oversaw the firm’s fundamental active stock and bond investments, announced plans to retire from the New York-based company last month.

Webb sets the strategic vision for the international fixed income group, which includes the hedge fund, fundamental and indexed fixed income, said Beades.

BlackRock named Ben Brodsky and Dave Horowitz as deputy CIOs of the hedge fund and the model-based group, said Beades. Parker will continue to report to Webb, who will keep management oversight of the model-based group.