Bluebell Capital Pushes to Oust Larry Fink as BlackRock Chairman

Bluebell Capital Partners, a London-based activist hedge fund, is taking aim at BlackRock, the world’s largest asset manager, with a proposal to remove Larry Fink, the company’s founder, from his role as Chairman. This move is detailed in a recent Wall Street Journal report, which cites a proxy statement filed by BlackRock with the U.S. Securities and Exchange Commission.

According to the filing, Bluebell has submitted a shareholder resolution aimed at amending BlackRock’s bylaws. The proposal suggests that Fink, in his capacity as Chairman, should become an Independent Director to enhance accountability and oversight of the company’s leadership. However, Bluebell faces a significant challenge in convincing BlackRock’s larger asset-management peers to oppose the board’s recommendation, particularly since its stake in BlackRock is minimal—likely less than 0.01% of the company’s $120 billion market capitalisation.

Larry Fink has led BlackRock since co-founding it in 1988. In recent years, his advocacy for environmental, social, and governance (ESG) investing has drawn significant criticism. In 2023, Fink distanced himself from the term "ESG," acknowledging its increasing politicisation. Bluebell argues that BlackRock’s 17-member board lacks independence and is too large to effectively oversee Fink. The hedge fund also pointed out the contradictions between BlackRock’s ESG strategy and its execution.

Despite these claims, Bluebell emphasised that its proposal was not a vote of no confidence in Fink. In response, BlackRock's proxy filing defended the current leadership structure, asserting that Fink’s dual role as CEO and Chairman is the most effective for the company. BlackRock further highlighted that its shares have experienced a 9,000% total return under Fink’s leadership.

Earlier this year, Bluebell pushed for BP to abandon its commitment to reducing oil and gas output after acquiring a small stake in the company. Bluebell, which was co-founded by Giuseppe Bivona and Marco Taricco in 2019, has previously targeted companies such as Danone, Bayer, and Glencore in its activist campaigns.