BlackRock dives into ARCP

BlackRock dives into ARCP
The fund giant has taken a major position in the beleaguered real estate investment trust, American Realty Capital Properties Inc., or ARCP.
FEB 02, 2015
Fund giant BlackRock Inc. has taken a major position in the beleaguered real estate investment trust, American Realty Capital Properties Inc., or ARCP. In a Thursday filing with the Securities and Exchange Commission BlackRock said it had acquired close to 60 million ARCP shares, a 6.6% equity stake. It's the second time in a month that a large institutional investor has taken a major stake in ARCP; at the end of December, Corvex Management, run by Carl Icahn acolyte Keith Meister, said it had acquired 64.7 million ARCP shares, or 7.1% of the company's shares. According to Morningstar Inc., the Corvex and BlackRock positions make them, respectively, the second and third largest shareholders of ARCP, according to ownership tallies dating to the end of September. At that date, Vanguard Group Inc. was the largest equity owner of ARCP, with almost 120 million shares held, or 13.2% of the total. Corvex is known as an activist investor while BlackRock is not. In its filing, BlackRock did not identify which of its funds bought the ARCP shares. BlackRock spokeswoman Katherine Ewert did not immediately return a call seeking comment on the filing. A lot has changed for ARCP since those September numbers for equity ownership were reported. At the end of October, ARCP announced that it had intentionally left uncorrected a $23 million accounting error over the first half of 2014. Two executives resigned immediately; later, in the middle of December, ARCP chairman and founder Nicholas Schorsch and chief executive David Kay resigned. The value of the company's stock has plummeted, falling 26% from Oct. 28 to Friday, when it was trading at $9.21 per share.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave