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

Investor accuses Canaras, U.S. Bank of hiding $50 million CLO loss
Investor accuses Canaras, U.S. Bank of hiding $50 million CLO loss

A trustee says it has no record of the investor now suing it for $50 million

New bill would let advisers unlock accredited investor status for clients
New bill would let advisers unlock accredited investor status for clients

Legislation seeks to loosen access to private markets to include professional advice from RIAs and broker-dealers, not just income or net worth.

More than a quarter of moms are planning to opt out of Trump accounts, survey finds
More than a quarter of moms are planning to opt out of Trump accounts, survey finds

"I just feel like I can get a lot further [by] opening a 529 account," said one respondent to the BabyCenter survey on Trump accounts.

IRA investors keep rushing toward lower-cost mutual funds
IRA investors keep rushing toward lower-cost mutual funds

New ICI research shows these retirement savers pay expense ratios nearly matching industrywide averages, extending years of fee declines

US household wealth grows more liquid than global peers
US household wealth grows more liquid than global peers

UBS data show American net worth is shifting from property to cash and funds faster than in seven other wealthy nations.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.