10 Best Asset Management Stocks to Buy According to Hedge Funds

5. BlackRock Inc (NYSE:BLK)

Number of Hedge Fund Holders as of Q3 2024: 37

BlackRock Inc (NYSE:BLK) is one of the largest asset management firms that offers services to institutional, intermediary and individual investors. It launches equity, fixed-income, balanced, and real estate mutual funds. It also launches multi-asset exchange-traded funds. The stock is up by 29% year-to-date.

The outperformance comes against the backdrop of robust financial results. The asset manager has also benefited from strong asset under-management growth and strategic initiatives, including mergers and acquisitions. BlackRock Inc (NYSE:BLK)  has already closed the Global Infrastructure Partners acquisition, which brought in $116 billion in client AUM. The asset manager is also expanding its footprint into private credit with the acquisition of HPS Investment Partners for $12 billion.

Year to date, the asset manager has recorded $360 billion in total net inflows, affirming the continued strength of the broad-based platform. In its third-quarter report on October 11, 2024, BlackRock Inc (NYSE:BLK) logged a 15% increase in revenues driven by the positive impact of markets on average AUM.

The strong financial position allows the company to shell a solid $5.1 a share dividend, translating to a dividend yield of 1.96%. BlackRock Inc (NYSE:BLK) has increased its dividend offering over the past five years, translating to an average annual increase of 10.67%. The dividend increase affirms strong earnings growth.

The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q3 2024 investor letter:

“BlackRock, Inc. (NYSE:BLK) – Shares of BLK rallied during 3Q as organic growth improved sequentially. Our long-term view of BLK has not changed. In the near-term, strong equity market performance is supportive of AUM and fee growth, and, visibility on declining interest rates is a potential tailwind to the fixed income ETF business. We continue to view BLK as a long-term share gainer with a broad spectrum of solutions, and we appreciate the strong balance sheet and steady capital return.”