BlackRock (BLK) Slid on Investors’ Concerns

Core Viewpoint - The London Company Large Cap Strategy reported a mixed performance in Q4 2025, with US equities showing overall gains while the portfolio lagged behind the Russell 1000 Index due to volatility and concentrated market leadership [1]. Performance Summary - In Q4 2025, the Russell 3000 Index rose by 2.4%, marking the third consecutive quarter of higher returns for US equities [1]. - The London Company Large Cap portfolio returned 0.4% (0.2% net), underperforming the Russell 1000 Index's 2.4% increase [1]. - The economic and policy environment heading into 2026 presents both confidence and doubt, with the portfolio aiming for long-term wealth creation while managing downside risk [1]. Company Focus: BlackRock, Inc. - BlackRock, Inc. (NYSE:BLK) was highlighted as a bottom performer in Q4 2025 due to investor concerns regarding private market liquidity, return durability, and increased expenses from recent acquisitions [3]. - Despite these challenges, BlackRock maintains solid fundamentals, including record assets under management (AUM), healthy inflows, and organic base fee growth exceeding long-term targets, driven by active ETFs, digital assets, and alternatives [3]. - As of February 17, 2026, BlackRock's stock closed at $1,072.67, with a one-month return of -4.89% and a twelve-month increase of 8.75% [2]. Hedge Fund Interest - BlackRock, Inc. was held by 63 hedge fund portfolios at the end of Q3 2025, an increase from 58 in the previous quarter [4]. - While BlackRock is recognized for its potential, the company believes certain AI stocks may offer greater upside potential with less downside risk [4].