RE: Blackrock Portfolio update26 Jan 2020 06:18
Let’s look at the facts
Blackrock bought shares on 26th Nov and became 5.02% owner at share price ~ £2,626,
Then, they increased their shares from 5.02% to 5.11% on 17th Dec at share price ~ £1,747 – when MW attacked.
On 20th Dec 2019 they sold 5.11% at share price £1,301. Their total loss is approx. £140 million in less than a month or so.
Maybe they were under margin call? Internal risk management policy where if stock drop sharply to trigger sell? Auto-stop loss?
One thing for sure, when you take such huge losses in few days and wipe good portion of yearly profit, you need to justify this to your shareholders. Maybe you can start blaming the company’s management, express your disappointment? one thing for sure. You cannot say I messed up – job security reasons.
Let us not forget the Capital Group whose assets under management exceeds $1.7 trillion invested in this stock, and I am sure such investment came after extensive due diligence. JP morgan supported the stock with price target +3,000 and stating their accounting treatment where adequate.
In my view, someone at Blackrock messed up. Someone job is on the line for taking losses of £140mn in few days!
With regards to interest income, GCC banks do not give you any penny on current account for corporate clients, and if few banks do, they will offer you something less than 0.3%. Anyone can call them and ask – it is not secret nor takes rocket science to make a phone call to GCC banks call center and ask.