Activist investor ValueAct has disclosed a significant stake in asset management giant BlackRock, with co-CEO Mason Morfit asserting that the company’s technological advancements, particularly its Aladdin platform, position it for even greater dominance. Morfit shared this insight on a CNBC contributor’s podcast, highlighting BlackRock’s potential to revolutionize investment management through software.
Key Takeaways
- ValueAct has acquired a stake in BlackRock.
- BlackRock’s Aladdin platform is seen as a major technological asset.
- Technology is expected to enhance BlackRock’s efficiency and market position.
ValueAct’s Strategic Vision for BlackRock
Mason Morfit, co-CEO of ValueAct, revealed the activist firm’s investment in BlackRock, emphasizing the transformative power of technology within the asset management firm. He described BlackRock as an "apex predator" that, by integrating "software DNA," can become "even more and more powerful."
Morfit specifically pointed to BlackRock’s Aladdin platform as a key driver of this enhanced power. He explained that Aladdin’s capabilities could automate investment decisions, factoring in risk and specific preferences, thereby managing portfolios "far better and faster and cheaper than a human being could do it."
Aladdin: A Technological Edge
BlackRock markets Aladdin as a comprehensive technology platform designed to unify the investment management process through a standardized data language. The platform’s ability to provide a holistic view of portfolios across both public and private markets is a significant advantage. Morfit believes this technological prowess can help BlackRock transcend its reputation as an ETF manager engaged in price wars with competitors like Vanguard.
While acknowledging that his investment thesis might seem counterintuitive given the potential threat technology poses to active managers, Morfit highlighted the "lot of inefficiencies" within the sector. He sees a clear need for a company like BlackRock to organize and streamline technology across the industry.
BlackRock’s Evolving Identity
Morfit noted that BlackRock has historically been recognized as a diversified asset manager excelling in ETFs. However, his attention in the past year has been captured by the realization that BlackRock is also "one of the best data and software companies in the industry."
Despite a recent dip in its stock price, with shares dropping over 3% in February and trading near flat for 2026 after a strong three-year run, most analysts maintain a "buy" rating on BlackRock. The consensus price target suggests a potential upside of over 23% in the coming year.
Sources
Founder Dinis Guarda
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