ValueAct’s Mason Morfitt revealed the investment in BlackRock, saying the company could take the lead in investment management software. Morfitt, co-chief executive officer of the activist investment firm, first revealed his holdings on an episode of “The Master Investor,” a podcast hosted by CNBC contributor Wilfred Frost. Mr Morfitt’s revelations come ahead of the fund’s regulatory replenishment scheduled for Tuesday. “It was already an apex predator,” Morfitt said, according to a transcript shared with CNBC. “But by putting software DNA into a dinosaur’s body, it makes it even more powerful.” Morfitt said BlackRock’s Aladdin platform could help automate investment decisions that take into account risk and position preferences. This will allow portfolio management to be done “much better, faster and cheaper than a human could do,” he said. BlackRock is touting Aladdin as a technology platform that unifies management processes through a common data language. The company notes that Aladdin’s platform allows you to view your entire portfolio across both public and private markets. Mr. Morfitt said such technology could help BlackRock break away from its reputation as an exchange-traded fund manager in a price war with rival Vanguard. Indeed, Morfitt acknowledged that his investment thesis could be considered “bizarre” given the threat this technology poses to active managers like him. But he said there were “a lot of inefficiencies” in the space, creating a need for companies to organize and streamline technology within the industry. “BlackRock has historically been viewed as a diversified asset manager that excels at creating ETFs,” Morfitt said. “But the interesting thing that has caught my attention over the past 12 months is that BlackRock is also one of the best data and software companies in the industry.” BlackRock stock fell more than 3% in February, pushing the stock closer to a 2026 sideways line after a three-year winning streak. Stocks have been flat on the broader market lately, with BlackRock up less than 50% over the past three years, while the S&P 500 is up nearly 67%. BLK .SPX 1Y Mountain BlackRock vs. S&P 500, 1 Year However, most analysts surveyed by LSEG rate BlackRock a buy. Common price targets suggest the stock could rise more than 23% over the next 12 months.
