| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 1% | - |
BlackRock Innovation and Growth Term Trust returned 1.01% on NAV during Q4 2024, underperforming the Russell 2500 Growth Index. The fund maintains its focus on innovative SMID cap growth companies through a diversified portfolio spanning public and private investments. Private holdings comprise 24.9% of the portfolio with 29 companies valued at $445 million. Performance was driven by underweight positioning in healthcare, particularly biotechnology, and strong stock selection in pharmaceuticals and electrical equipment. Notable contributors included Axon Enterprise benefiting from AI integration and Vertiv Holdings capitalizing on liquid cooling trends. Detractors included automobile components exposure and specialty retail positioning reflecting housing sector weakness. The fund sees encouraging signs in the IPO market with over $29 billion raised in Q4 2024, far exceeding recent years. Looking ahead, BlackRock enters 2025 optimistically, citing solid economic growth, low unemployment, and resilient consumers. The AI theme continues to broaden with opportunities emerging in datacenter-related businesses across semiconductors, software, and connectivity solutions.
BIGZ seeks to provide total return and income through investing in innovative small- and mid-capitalization companies with above-average earnings growth potential, utilizing both public and private investments with a focus on companies introducing new products or services that potentially change the marketplace.
We enter 2025 optimistic and balanced in our outlook. The U.S. economy continues to show solid growth, low unemployment, a resilient consumer (notwithstanding some stress among the lower-income cohort), and improved wealth from high home equity values. All in all, we are still finding attractive bottom-up investment opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Dec 31 2024 | 2024 Q4 | AAXN, CSGP, CYH, DKNG, FND, FOXF, GDRX, LMCA, SAIA, TPG, TW, VRT | AI, growth, innovation, Options, private equity, SMID Cap, technology | - | BIGZ returned 1.01% in Q4, underperforming benchmarks despite strong healthcare positioning and AI-exposed holdings like Axon Enterprise. The fund's 25% private equity allocation faces valuation pressures but benefits from improving IPO conditions with $29 billion raised in Q4. BlackRock remains optimistic on innovation themes, particularly AI's broadening impact across semiconductors and datacenter infrastructure. |
| Sep 30 2024 | 2024 Q3 | AXON, CSGP, ENTG, FIX, MPWR, TPG, TW, VRT | growth, innovation, mid cap, Options, small cap, technology | - | BlackRock Innovation and Growth Term Trust targets mid- and small-cap innovative growth companies through a concentrated 84-position portfolio enhanced by covered call writing. The fund focuses on companies introducing marketplace-changing products or services, currently trading at an 11.59% discount to NAV while providing a 13.77% distribution rate through its option income strategy. |
| Jun 30 2024 | 2024 Q2 | ASM, AXON, CSGP, ENTG, LBRDK, MPWR, PINS, SAIA, TW, VRT | AI, growth, innovation, private equity, semiconductors, SMID Cap, technology | - | BIGZ focuses on innovative SMID cap growth companies with 24% in private investments. Q2 underperformance was offset by strong AI-driven semiconductor gains and communication services selection. Improving IPO market conditions provide optimism, though private valuation pressures persist. The Trust doubled distributions and maintains technology sector emphasis while diversifying across multiple industries. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2024 Q4 |
AIBlackRock sees AI as a broadening dynamic with attractive risk-reward potential among AI-exposed companies across semiconductors, software and digital advertising. They identify emerging opportunities in datacenter-related businesses operating in optical equipment, connectivity solutions, and application specific chips. |
Semiconductors Software Data Centers Connectivity |
Private CreditBIGZ holds 29 private companies accounting for 24.9% of the portfolio with a combined valuation of $445 million. The private portfolio is diversified across multiple sectors, industries and stages of company lifecycle, ranging from early funding companies to those closer to becoming publicly traded. |
Private Equity Growth Companies Diversification Lifecycle | |
| 2024 Q2 |
AIA swell in datacenter capital expenditures is one of the important points we think about in our research pipeline. Continued excitement around artificial intelligence fueled strong returns for semiconductor holdings including Monolithic Power Systems and ASM International. |
Data Centers Semiconductors Infrastructure |
Private CreditBIGZ held 29 private companies that accounted for 23.8% of the portfolio. The Trust takes a deliberate approach to diversification in constructing the private portfolio, investing across multiple sectors, industries and stages of a company's lifecycle. We are beginning to see positive signs in the IPO market, which contracted dramatically during 2022 and 2023. |
Private Equity IPO Venture Capital Growth Capital |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| AAXN | Notably, an off-benchmark position in Axon Enterprise, Inc. boosted returns as the company continues to beat expectations and is benefitting from the use of artificial intelligence in their software. |
| VRT | Stock selection within electrical equipment boosted performance. Specifically, an off-benchmark position in Vertiv Holdings Co. contributed as the company continues to benefit from positive market trends in the liquid cooling space. |
| GDRX | Elsewhere in health care, returns were bolstered by stock selection in the pharmaceuticals industry, as an off-benchmark position in Galderma Group, a company specializing in dermatology, contributed to performance during the quarter. |
| FOXF | The largest detractor from returns during the quarter was stock selection in the automobile components space within consumer discretionary. Specifically, off-benchmark positions in Relativity Space, Inc. and Fox Factory Holding Corp., which underperformed amid a decrease in consumer spending. |
| FND | Additionally, within the consumer discretionary space, an overweight position in Floor & Décor Holdings, Inc., within specialty retail detracted from relative performance, which reflected slowness in the housing sector. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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