Jim Cramer’s 5 Latest Stock Picks This Week

2. BlackRock Inc (NYSE:BLK)

Number of Hedge Fund Investors: 48

BlackRock Inc (NYSE:BLK) is one of the latest stock picks of Jim Cramer. When asked about BlackRock Inc (NYSE:BLK), Cramer said “it’s going higher.” Cramer thinks BlackRock Inc (NYSE:BLK) is a “great financial repository for our nation.” Jim Cramer said “you should own it” and also praised BlackRock Inc’s (NYSE:BLK) acquisition of Global Infrastructure Partners (GIP).

Cramer said BlackRock Inc (NYSE:BLK) is still “inexpensive.”

During its Q4 earnings call BlackRock Inc’s (NYSE:BLK) management talked about BlackRock Inc’s (NYSE:BLK) GIP deal:

 “The combination will mark a transformational change in our private market scale and growth. GIP is the world’s leading independent infrastructure manager with current client AUM of over $100 billion and fee-based AUM of over $60 billion. The acquisition will create a highly complementary pro forma $150 billion infrastructure platform post-closing tripling BlackRock’s infrastructure client assets.

The integration will nearly double our private markets management fees to over $1.5 billion and add over $400 million in post-tax annual FRE with FRE margins above 50%. Since its founding in 2006, GIP has successfully scaled its equity flagship series from its $5.6 billion Fund I to $20-plus billion in the most recent vintages. GIP’s current team of approximately 400 employees across 11 global offices has delivered strong long-term performance for clients and is expected to generate approximately $760 million of management fee revenue in 2023. Turning to the financial terms of the transaction, we are acquiring 100% of the business and assets of GIP for total consideration of $3 billion in cash and approximately 12 million shares of BlackRock stock.”

Read the full earnings call transcript here.

The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its fourth quarter 2023 investor letter:

“BlackRock, Inc. (NYSE:BLK) – BLK rallied in 4Q after underperforming earlier in the year. BLK performance from quarter to quarter is often a function of market performance, which drives the company’s assets under management. Our conviction in BLK remains high, based on the company’s durable competitive position.”