15 Stocks Targeted By Activist Hedge Funds

2. BlackRock Inc (NYSE:BLK)

Company Market Cap as of December 31: $158.77 Billion

Number of Hedge Fund Holders: 37

BlackRock Inc (NYSE:BLK) is a financial services company that operates as an investment manager. It provides its services to institutional, intermediary, and individual investors, including corporate, public, union, and industry pension plans. While the stock was up by about 28% in 2024, outperforming the overall market, it remains one of the stocks targeted by activist hedge funds.

Activist investor Bluebell Capital Partners is the latest to take a swipe of the investment manager over the latter’s ESG (environment, social, and governance) investing strategy. Bluebell Capital Partners is stepping up its efforts to challenge the largest asset manager in the world on the grounds that the latter’s ESG approach puts its reputation at risk.

Bluebell is back on the attack after a similar provocation in 2022 that resulted in no change to the fund’s strategy. It is believed that the company is planning to publish a critical analysis of the fund manager’s ESG-related direction. Additionally, Bluebell accused BlackRock Inc (NYSE:BLK) of being a hypocritical investor for not denouncing the Belgian chemical company Solvay, in which it owns stock, for disposing of waste in the Mediterranean.

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.”