Billionaire US investor Carl Icahn described BlackRock Inc, the world’s largest asset manager, as an “extremely dangerous company” due to issues related to its exchange-traded fund products, Reuters reported.
“They sell liquidity,” Icahn was quoted as saying in reference to BlackRock’s ETF business. “There is no liquidity. That’s my point. And that’s what’s going to blow this up.”
Icahn was speaking at the CNBC Institutional Investor Delivering Alpha Conference in New York, sharing the stage with Larry Fink, chief executive of BlackRock.
The activist investor said he was concerned about the amount of money invested in high-yield ETFs, which he called “overpriced.”
Fink countered that Icahn’s characterizations of ETFs were “dead wrong” and that the index funds were just “a tool for buying exposure”, the report said.
Fink also said that ETFs “create more price transparency than anything in the bond market today,” especially in high-yield.
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