The doubling down from BlackRock comes amid a time of equity market turmoil for the nation’s largest real estate holding company. Shares of Realogy are trading below $6 per share this week for the first time since the company’s 2012 initial public offering.
The vast majority of BlackRock’s equity holdings on behalf of clients are in index strategies, colloquially known as passive funds, which track the investment results of third-party indices, according to another investor source. Index providers determine which companies are included in the index, so the change in share ownership may not necessarily be a reflection of a portfolio manager’s view on the merits of a specific company.
Realogy was changed from the S&P Mid-Cap 400 to the SmallCap 600 on June 4 of this year, so it’s possible that could have led to the change in holdings, although BlackRock did not confirm whether that is the case.
BlackRock owns a significant stake in RE/MAX as well, with more than 2.6 million shares, or roughly a 15 percent stake in the company, according to data from investment research firm Morningstar. Meanwhile, BlackRock also owns 2.3 million shares in Zillow for a 1.1 percent stake; a 0.78 percent stake in eXp World Holdings with 481,000 shares; and a 5.6 percent stake in Redfin, with 5.1 million shares, according to Morningstar.
BlackRock and Realogy both declined to comment. BlackRock will report its second quarter earnings on July 19.
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