BlackRock Freezes Hiring, Puts Check On Expenses Citing Performance Challenges

BlackRock Inc's BLK Chief Financial Officer Gary Shedlin said the company is putting a stop to hiring and reducing expenses during a financial conference hosted by Goldman Sachs.
"We're trying to be a little more prudent," he said, adding that these measures will put BlackRock in a better position next year, Reuters reported.
Shedlin added that BlackRock witnessed some weakness in retail mutual funds, with some short-term performance challenges.
However, it expects a sizeable ramp-up in performance fees from illiquid businesses in the coming years.
In Q3, BlackRock's assets under management dropped 16% Y/Y to $7.96 billion, as investments in Europe and Asia lost value due to a stronger dollar. Its net income also fell 17% to $1.45 billion.
Shares in BlackRock are down roughly 30% this year, underperforming the benchmark S&P 500 Index.
Separately, small activist investor Bluebell Capital Partners Ltd has sought to replace BlackRock CEO Larry Fink for being inconsistent in its focus on environmental, social, and corporate governance (ESG) issues.
Related: BlackRock's Eco-Friendly Stance Upsets Republicans, $1B Pulled In ESG Protest.
As per the Reuters report, Bluebell said BlackRock and Fink have "alienated clients and attracted an undesired level of negative publicity" with the firm's ESG strategy.
The hedge fund that owns 0.01% in the asset manager also wants BlackRock to "initiate a strategic review of (its) stance on ESG" and adopt other governance changes.
Price Action: BLK shares closed at $708.00 on Tuesday.

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