BlackRock Inc (BLK - Free Report) is in talks to invest in a fintech company, Capital Preferences Limited. According to a Bloomberg report, the company’s goal is to concentrate on retail investors and serve them better, as per two people with the matter.
Capital Preferences’ software assists in creating portfolios that suit the unique needs and preference of clients based on their risk tolerance. The software also tracks investment decisions made by investors to understand their level of risk tolerance.
BlackRock’s signature operating system, Aladdin, combines portfolio management, risk analytics and trading. The company is trying to figure out ways of incorporating Capital Preferences’ software in its existing technology, either Aladdin or FutureAdvisor.
Being the world’s largest asset manager, the company plans to expand and reach out to retail investors with the help of the above technologies.
In a recent interview, BlackRock’s COO, Rob Goldstein, mentioned that he sees tremendous potential of robo-advice in risk management in the wealth management space. That explains why BlackRock is on an acquisition spree lately, investing in different fintech companies.
Cachematrix is one such acquisition, which has helped BlackRock to simplify cash-management process for banks and corporate clients. FutureAdvisor, a digital investment manager, is another company that BlackRock acquired. The company has acquired a minority interest in two more companies recently — Europe-based robo-advisor, Scalable Capital and a fintech platform providing access to alternative investments, iCapital.
Shares of BlackRock have gained 27.9% over the last 12 months, outperforming the industry’s rally of 26.1%.
Currently, BlackRock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some top-ranked stocks in the same space are Janus Henderson Group Plc (JHG - Free Report) , Virtus Investment Partners, Inc (VRTS - Free Report) and T. Rowe Price Group, Inc (TROW - Free Report) .
The Zacks Consensus Estimate for Janus Henderson Group has been revised 9% upward for the current year over the last 60 days. Its share price has witnessed an 11.5% increase over the past 12 months. It currently sports a Zacks Rank of 1.
Virtus Investment Partners witnessed an upward earnings estimate revision of 1.5% for the current year in the last 60 days. Also, the stock has returned 19.2% in a year’s time. It currently carries a Zacks Rank of 1.
T. Rowe Price Group’s Zacks Consensus Estimate has been revised upward 1.8%, for the current year in the past 60 days. Also, in a year’s time, its share price has moved up 35.3%. It currently carries a Zacks Rank of 2.
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