Six of the world’s largest
investment companies have seen huge capital outflows year-to-date (YTD) from
their market capitalization as economic uncertainty troubles the industry. As
of March 16, 2023, the leading investment firms accounted for a capital outflow
of $52.55 billion YTD, according to new data from financial publication
FinBold.
Of the six, four are based in
the United States and together account for nearly 80% of the capital outflows,
FinBold said in its report, noting that “the plunge in market cap is a direct
impact of investors’ rising level of uncertainty due to persistently high
global inflation, change in monetary policies, and interest rate hikes by
various central banks.”
Largest Investment Firms Lose
Big
Out of the six companies,
Nebraska-based Berkshire Hathaway saw the biggest outflow as $29.12 billion
left the American investment giant. This represents 4.27% of the firm’s current
market capitalization of $652.66 billion.
New York-based global investment
firm BlackRock trailed behind Berkshire Hathaway as $11.52 billion left the
company year-to-date. This stands for 10.82% of the company’s current $94.91
billion market cap.
Coming in with the third largest
loss is International Holding Company (IHC), an Abu Dhabi-based investment company,
which has recorded $8.97 billion in capital outflow since the start of the
year. The market cap of the company, which is one of the Middle East and
Africa’s large conglomerates, stands at about $236 billion.
Furthermore, Prosus, one of the
largest technology investors in the world, posted an outflow of $1.64 billion
YTD, coming in fourth. The Amsterdam-based firm currently boasts a market cap
of about $139 billion.
While Berkshire Hathaway saw the largest outflow, Blackstone Group generated the biggest inflow.
In the fifth position is Crown
Castle, a Houston-based operator of telecommunications networks, which recorded
an outflow of $1.23 billion, bringing its market cap to $57.51 billion. On the
other hand, US banking giant Morgan Stanley, which ranked 6th, posted the least
losses with a capital outflow of $0.07 billion.
Although economic uncertainty contributed majorly to the plunges, the capital outflows for the US investment firms come
at a time the banking industry in the country is grappling with some of its
largest bank failures since the 2008 financial crisis. Four US lenders
collapsed within the span of four days last week.
Technology-focused Silicon
Valley Bank collapsed last Friday, plummeting bank stock prices which later rebounded. Signature Bank was shuttered later on Sunday.
However, a few days earlier, crypto-friendly Silvergate Bank voluntarily liquidated its assets.
Blackstone, Prologis and Others
Generate Capital Inflows
Despite the huge volume of
capital outflows, some investment firms generated a significant amount of
inflows. This group was led by Blackstone Group, a New York-based alternative
asset manager, whose market cap shot up to $62.57 billion after attracting $9
billion.
Blackstone Group was trailed
behind by Prologis, a California-based real estate investment trust which
generated an inflow of $6.76 billion during the period. Digital infrastructure
provider Equinix comes next with an inflow of $3.86 billion.
In addition, Swedish investment
firm Investor AB generated an inflow of $1.46 billion with a market cap of
$58.13 billion during the first months of 2023 up until March 16th.
“Looking ahead, the prevailing
level of uncertainty could push investors targeting investment firms to stay on
the sidelines until market conditions improve,” FinBold explained.
Six of the world’s largest
investment companies have seen huge capital outflows year-to-date (YTD) from
their market capitalization as economic uncertainty troubles the industry. As
of March 16, 2023, the leading investment firms accounted for a capital outflow
of $52.55 billion YTD, according to new data from financial publication
FinBold.
Of the six, four are based in
the United States and together account for nearly 80% of the capital outflows,
FinBold said in its report, noting that “the plunge in market cap is a direct
impact of investors’ rising level of uncertainty due to persistently high
global inflation, change in monetary policies, and interest rate hikes by
various central banks.”
Largest Investment Firms Lose
Big
Out of the six companies,
Nebraska-based Berkshire Hathaway saw the biggest outflow as $29.12 billion
left the American investment giant. This represents 4.27% of the firm’s current
market capitalization of $652.66 billion.
New York-based global investment
firm BlackRock trailed behind Berkshire Hathaway as $11.52 billion left the
company year-to-date. This stands for 10.82% of the company’s current $94.91
billion market cap.
Coming in with the third largest
loss is International Holding Company (IHC), an Abu Dhabi-based investment company,
which has recorded $8.97 billion in capital outflow since the start of the
year. The market cap of the company, which is one of the Middle East and
Africa’s large conglomerates, stands at about $236 billion.
Furthermore, Prosus, one of the
largest technology investors in the world, posted an outflow of $1.64 billion
YTD, coming in fourth. The Amsterdam-based firm currently boasts a market cap
of about $139 billion.
While Berkshire Hathaway saw the largest outflow, Blackstone Group generated the biggest inflow.
In the fifth position is Crown
Castle, a Houston-based operator of telecommunications networks, which recorded
an outflow of $1.23 billion, bringing its market cap to $57.51 billion. On the
other hand, US banking giant Morgan Stanley, which ranked 6th, posted the least
losses with a capital outflow of $0.07 billion.
Although economic uncertainty contributed majorly to the plunges, the capital outflows for the US investment firms come
at a time the banking industry in the country is grappling with some of its
largest bank failures since the 2008 financial crisis. Four US lenders
collapsed within the span of four days last week.
Technology-focused Silicon
Valley Bank collapsed last Friday, plummeting bank stock prices which later rebounded. Signature Bank was shuttered later on Sunday.
However, a few days earlier, crypto-friendly Silvergate Bank voluntarily liquidated its assets.
Blackstone, Prologis and Others
Generate Capital Inflows
Despite the huge volume of
capital outflows, some investment firms generated a significant amount of
inflows. This group was led by Blackstone Group, a New York-based alternative
asset manager, whose market cap shot up to $62.57 billion after attracting $9
billion.
Blackstone Group was trailed
behind by Prologis, a California-based real estate investment trust which
generated an inflow of $6.76 billion during the period. Digital infrastructure
provider Equinix comes next with an inflow of $3.86 billion.
In addition, Swedish investment
firm Investor AB generated an inflow of $1.46 billion with a market cap of
$58.13 billion during the first months of 2023 up until March 16th.
“Looking ahead, the prevailing
level of uncertainty could push investors targeting investment firms to stay on
the sidelines until market conditions improve,” FinBold explained.
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Solomon Oladipupo