BlackRock is applying hedge fund strategies to its exchange-traded fund business.

Jeffrey Rosenberg, the firm’s senior portfolio manager on the systemic fixed income team, has a leading role in the firm’s liquid alternatives ETFs — which use a long-short strategy in ETF wrappers.

He contends the strategy provides valuable diversification amid the recent breakdown in the relationship between stocks and bonds.

“The great old adage around fixed income is ‘my bonds go up when my stocks go down.’ Now, we just went through a period in March with war risk where we clearly saw again on display… that doesn’t hold. And, really saw it in 2022,” Rosenberg told CNBC’s “ETF Edge” this week. “This entire post-Covid environment has really challenged that bedrock principle of the 60-40 portfolio that bonds are diversifying.”

According to Rosenberg, client demand for liquid alts ETFs is growing because there’s a desire to diversify your diversifiers.

“We’re bringing the techniques that we’ve developed in the hedge fund side of our business, which primarily center around market neutral, long-short investing,” he added. “That’s the key kind of ‘a-ha moment’ for ETF investors to realize most of what they have exposure to in the ETF ecosystem is some kind of beta exposure.”

Rosenberg is a portfolio manager on two BlackRock liquid alts ETFs: the iShares Systematic Alternatives Active ETF (IALT) and the iShares Managed Futures Active ETF (ISMF). As of April 8, the firm’s website shows IALT is up almost 8% so far this year while the ISMF is up nearly 5%.

“What liquid alternatives bring to the table is the ability to look at other sources of return away from just market directionality,” said Rosenberg.

He highlighted a major challenge investors face on the stock market side.

“Our equity portfolios have been more and more dominated by the big, large cap tech winners,” said Rosenberg. “With that concentration is a loss of diversification and a loss of diversification value on the equity side. So, liquid alternatives can address both of these challenges to portfolio construction.”

Rubrik shares soared 25% on Friday after the data management company posted blowout third-quarter numbers and boosted guidance.

The stock, which debuted on the market in April 2024, headed for its second-best day on record.

Revenue jumped 48% from a year earlier to $350 million, topping the $320 million average analyst estimate, according to LSEG. In its announcement late Thursday, Rubrik reported adjusted earnings of 10 cents per share, while analysts had expected a loss of 17 cents per share.

The company boosted revenue guidance for the fiscal year to a range of $1.28 billion to $1.282 billion, up from a previous high of $1.237 billion.

CEO Bipul Sinha told CNBC’s “Closing Bell: Overtime” on Thursday that the company’s strength in cyber resilience and its recent move into safeguarding artificial intelligence agents is fueling its rapid growth.

“As businesses are taking on agents, their biggest worry is, they don’t know what the hell is going on,” Sinha said. “What are these agents doing? Are they hallucinating? Do they have guardrails? And if they do make mistakes, can we undo those mistakes?”

Rubrik had a net loss of $63.83 million, a loss of 32 cents per share, narrowing significantly from the net loss a year ago of $130.91 million, a loss of 71 cents per share.

Ambarella stock roared 20% higher Friday as the chip designer reported better-than-expected fiscal second-quarter results and issued strong guidance.

Here’s how the company did compared with LSEG expectations:

• Earnings: 15 cents per share adjusted vs 5 cents per share expected
• Revenue: $96 million vs $90 million expected

Ambarella, which is known for its system-on-chip semiconductors and software used for edge artificial intelligence, said it expects fiscal third-quarter revenue between $100 million and $108 million, beating the LSEG estimate of $91 million.

The company boosted its fiscal-year revenue growth outlook to a range of 31%-35%, to $379 million at the midpoint, which topped the $350 million expected by LSEG.

“After a multiyear period of significant edge AI R&D investment, our broad product portfolio enable us to address a rising breadth of edge AI applications,” CEO Fermi Wang said on a call with analysts Thursday.

Wang singled out strength in “portable video, robotic aerial drones and edge infrastructure.”

Edge computing refers to the direct processing and storing of data at the device level instead of those actions being handled remotely in the cloud at a data center.

Ambarella had a net loss of $20 million or a loss of 47 cents per share in the second quarter. That narrowed from the same quarter a year ago, when the company had a net loss of $35 million or a loss of 85 cents per share. Revenue rose 50%.

The company said stock-based compensation and the amortization of acquisition-related costs weighed on earnings.

In June, Bloomberg reported the company was considering a sale and had held talks with banks. Shares climbed 20% higher on the news.

JPMorgan Chase CEO Jamie Dimon on Tuesday warned about the dangers of locking in an outlook about the economy, particularly considering the poor recent track record of central banks like the Federal Reserve.

In the latest of multiple warnings about what lies ahead from the head of the largest U.S. bank by assets, he cautioned that myriad factors playing out now make things even more difficult.

“Prepare for possibilities and probabilities, not calling one course of action, since I’ve never seen anyone call it,” Dimon said during a panel discussion at the Future Investment Initiative summit in Riyadh, Saudi Arabia.

“I want to point out the central banks 18 months ago were 100% dead wrong,” he added. “I would be quite cautious about what might happen next year.”

The comments reference back to the Fed outlook in early 2022 and for much of the previous year, when central bank officials insisted that the inflation surge would be “transitory.”

Along with the misdiagnosis on prices, Fed officials, according to projections released in March 2022, collectively saw their key interest rate rising to just 2.8% by the end of 2023 — it is now north of 5.25% — and core inflation at 2.8%, 1.1 percentage points below its current level as measured by the central bank’s preferred gauge.

Dimon criticized “this omnipotent feeling that central banks and governments can manage through all this stuff. I’m cautious.”

Much of Wall Street has been focused on whether the Fed might enact another quarter percentage point rate hike before the end of 2023. But Dimon said, “I don’t think it makes a piece of difference whether the rates go up 25 basis points or more, like zero, none, nada.”

In other recent warnings, Dimon warned of a potential scenario in which the fed funds rate could eclipse 7%. When the bank released its earnings report earlier this month, he cautioned that, “This may be the most dangerous time the world has seen in decades.”

“Whether the whole curve goes up 100 basis points, I would be prepared for it,” he added. “I don’t know if it’s going to happen, but I look at what we’re seeing today, more like the ’70s, a lot of spending, a lot of this can be wasted.” (One basis point equals 0.01%.)

Elsewhere in finance, Dimon said he supports ESG principles but criticized the government for playing “whack-a-mole” with no concerted strategy.

“You can’t build pipelines to reduce coal emissions. You can’t get the permits to build solar and wind and things like that,” he said. “So we better get our act together.”

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WASHINGTON — A Ukrainian official slammed Tesla and SpaceX CEO Elon Musk for ordering engineers to shut off Starlink’s satellite network over Crimea last year in order to thwart a Ukrainian attack on Russian warships.

According to a new biography of Musk, the South African-born billionaire asked, “How am I in this war?” during an interview with author Walter Isaacson.

In the early days of Russia’s unprovoked invasion of Ukraine, as Western governments worked to supply Kyiv with artillery and air defense systems, the first of Musk’s Starlink terminals arrived in the country. The billionaire eventually soured on the arrangement.

“Starlink was not meant to be involved in wars. It was so people can watch Netflix and chill and get online for school and do good peaceful things, not drone strikes,” Musk said, according to the book. He told Isaacson that he was worried the Ukrainian attack on Russian vessels would provoke the Kremlin into launching a nuclear war. The book, titled “Elon Musk,” will be released Tuesday.

A top aide to Ukraine President Volodymyr Zelenskyy lashed out at Musk over the revelation.

“By not allowing Ukrainian drones to destroy part of the Russian military fleet via Starlink interference, Elon Musk allowed this fleet to fire Kalibr missiles at Ukrainian cities,” Mykhailo Podolyak wrote Thursday on social media after CNN reported on some of the details from Isaacson’s book.

“As a result, civilians, children are being killed. This is the price of a cocktail of ignorance and big ego,” he added on X, which was formerly known as Twitter. Musk bought Twitter last year.

Crimea, a peninsula on the Black Sea that Russia illegally annexed from Ukraine in 2014, is home to Russia’s Black Sea warships. In the days following Russia’s full-scale invasion in February 2022, the Black Sea fleet fired missiles on once-industrious Ukrainian coastal cities while imposing a devasting naval blockade.

Ukraine digital minister Mykhailo Fedorov, who had asked Musk for Starlink capability on Twitter, posted that Starlink was “here” in Ukraine — with a photo showing more than two dozen boxes in the back of a truck.

Starlink is SpaceX’s global network of more than 4,000 satellites that provide service to over 50 countries. In Ukraine, Starlink has worked as the connective tissue for crucial battlefield communications.

Isaacson added that Musk’s decision was discussed in a phone call with President Joe Biden’s national security advisor, Jake Sullivan, and Chairman of the Joint Chiefs of Staff U.S. Army Gen. Mark Milley.

Musk, according to Isaacson, was also engaged in a texting conversation with Fedorov. The official pleaded with Musk to restore Starlink’s connectivity so that Ukrainian submarine drones could carry out the attack on Russia’s warship fleet.

Musk replied that he thought Ukraine was “going too far and inviting strategic defeat,” according to Isaacson’s book.

“I think if the Ukrainian attacks had succeeded in sinking the Russian fleet, it would have been like a mini Pearl Harbor and led to a major escalation,” Musk said, according to Isaacson. “We did not want to be a part of that.”