BlackRock Plummets 1.28% with 172nd Volume Rank as Antitrust Case Threatens $27T Portfolio

On August 1, BlackRock (BLK) fell 1.28% with a trading volume of $0.73 billion, up 32.5% from the previous day. The stock ranked 172nd in trading activity. Meanwhile, a Texas federal judge rejected most of BlackRock’s request to dismiss a multi-state antitrust lawsuit alleging the firm colluded with other asset managers to suppress coal production and raise energy prices through climate activism. Of 21 charges, three were dismissed, leaving the case to proceed on claims that BlackRock and peers violated antitrust laws by participating in Climate Action 100+ and advocating for ESG goals. The ruling could reshape $27 trillion in managed assets, with potential remedies including divestment from coal holdings, a move BlackRock argues would harm energy markets.

The litigation, led by Republican attorneys general, accuses BlackRock of forming an “investment cartel” to manipulate energy markets. The judge, appointed by former President Trump, denied motions to dismiss claims under federal antitrust law but dismissed state-specific consumer protection allegations. BlackRock and co-defendants, including State Street and Vanguard, have denied wrongdoing, calling the case “half-baked.” The outcome may influence how asset managers approach ESG strategies, particularly in sectors like energy, where regulatory scrutiny intensifies.

A backtested trading strategy focused on high-liquidity stocks showed a 166.71% return from 2022 to the present, outperforming a 29.18% benchmark by 137.53%. The approach, which targets the top 500 stocks by daily volume and holds them for one day, highlights the role of liquidity concentration in short-term gains. This underscores the market’s responsiveness to trading activity, especially in volatile environments where high-volume stocks drive price movements.