BlackRock Says ‘New Regime’ Calls for More Active Management
- World’s largest asset manager benefited from index boom
- Firm says ‘mega forces’ keeping rates above pre-Covid levels
The BlackRock headquarters in New York.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
BlackRock Inc., which capitalized on a decade-long boom in index investing, said investors should rely more heavily on actively managed strategies.
Higher interest rates, persistent inflation and more geopolitical risk offer active managers and hedge funds a bigger opportunity to beat simple buy-and-hold portfolios, BlackRock analysts wrote Tuesday in a paper that referred to the environment as a “new regime.”