BlackRock’s $100 Billion Model Makers Are Betting on Megacaps
- Larger companies tend to have strong balance sheets: Yadava
- Ready-made model portfolio strategies booming in popularity
The team responsible for assembling BlackRock Inc.’s model portfolios is favoring the stock market’s largest companies, potentially unleashing a flood of billions of dollars into technology shares.
The investing giant, one of the biggest providers of the ready-made strategies followed by asset managers and financial advisers, is “pretty overweight” on megacap tech and growth-oriented names within its model portfolios, according to Tushar Yadava, a strategist with BlackRock’s Multi-Asset Strategies & Solutions. The fact that just a handful of companies have powered this year’s market gains has fanned concern about the rally’s sustainability. Yet it’s these firms that tend to have the strongest fundamentals to weather the Federal Reserve’s tightening campaign, he said.