Despite the economic environment, BlackRock (NYSE: BLK) has a knack for what works. It's a testament to its people, as well as its singular focus on asset management. No doubt, such things were crucial for allowing BlackRock to thrive during the financial disarray over the past year.
Now, as the markets stabilize, BlackRock is there to reap the rewards. In fact, according to the firm's Q3 report, earnings spiked 46% to $317 million, or $2.27 per share (although, a part of this came from a tax benefit).
All in all, BlackRock keeps attracting investor dollars. Over the quarter, assets increased 4% to $1.43 trillion. Roughly $11.9 billion went into stock funds and $3.5 billion flowed into bond funds.
However, by the end of the year, BlackRock will become the world's largest asset manager because of its deal to purchase Barclays Global Investors. Again, because of BlackRock's solid position, it has had the opportunity to pick up key asses.
At the same time, BlackRock has leveraged its platform into other growth areas, such as the federal government's Public-Private Investment Partnership Program, which helps clean up distressed mortgage assets. Given the firm's history of investment excellence, I think it's a good bet it will find a way to make money on this as well.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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