The Bank of New York Mellon Corporation (BK) to Expand Hedge Fund Biz

reminiscences of a stock operator pdf

The Bank of New York Mellon Corporation (NYSE:BK) recently entered into an agreement with HedgeMark International, LLC to acquire 65% ownership stake in the latter. The remaining 35% stake is already held by the company since 2011.

The deal is expected to close in the second quarter of 2014. However, it is still subject to regulatory approval.

Now, what prompted The Bank of New York Mellon Corporation (NYSE:BK) to buy the additional stake?

The market scenario is currently witnessing the shift of institutional clients’ preference from conventional modes of investment to alternative arenas. Investors are now willing to take calculated risk to maximize their return.

As an alternative investment solution, hedge funds are gaining popularity as they allow investors to hedge risks and yield comparatively higher. Moreover, these funds are largely unregulated, as clients of net worth more than $1 million with considerable investment knowledge are allowed to deal with these.

HedgeMark International specializes in hedge funds and offers services related to structuring, oversight and risk monitoring of hedge funds. Hence, once the acquisition is completed, the acquired units will complement The Bank of New York Mellon Corporation (NYSE:BK)’s hedge fund business and consequently improve profitability in the long run. Moreover, HedgeMark International’s expertise will enable BNY Mellon to deliver enhanced services and better risk management to its clients.

The Bank of New York Mellon Corporation (NYSE:BK)’s stock price movement following the news release depicted a positive market response. The shares closed at $31.80 on Feb 24, up 1.4% from the previous day.

BNY Mellon currently carries a Zacks Rank #3 (Hold). Some better-ranked major regional banks include BB&T Corporation (BBT), Fifth Third Bancorp (FITB) and The PNC Financial Services Group, Inc. (PNC). All these stocks have a Zacks Rank #2 (Buy).

BB&T CORP (BBT): Free Stock Analysis Report

BANK OF NY MELL (BK): Free Stock Analysis Report

FIFTH THIRD BK (FITB): Free Stock Analysis Report

PNC FINL SVC CP (PNC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)



About the Author

Zacks
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were audited and attested by Baker Tilly, an independent accounting firm.

Be the first to comment on "The Bank of New York Mellon Corporation (BK) to Expand Hedge Fund Biz"

Leave a comment

Your email address will not be published.