BlackRock, the second largest fixed income manager in the US, has bought a majority stake in HPB Management to beef up its existing hedge fund stable. The $273 billion group declined to disclose how much it shelled out for $150 million HPB. The firm's founder Howard Berkowitz will join the firm as a managing director and chief executive officer of BlackRock's fund of funds offering. Alternative investments including absolute return strategies are BlackRock's fastest growing business and now make up $5.3 billion.
CBO liquidation brawl
The fate of the equity portion of collateralized bond obligations is at the center