With the recent volatility in the financial sector, choosing a sound investment has become an increasingly daunting task. However, BlackRock still offers some hope. While the stock is down about 10 % YTD, it has fared much better than the Financial Sector SPDR, (XLF: 19.64, 0.00 (0.00%)), which is currently down around 30% YTD. BlackRock, (BLK: 172.05, 0.00 (0.00%)), which offers investment management, risk management and advisory services to institutional and individual investors worldwide, has assets under management totaling $1.428 trillion as of June 2008. The firm has remained profitable, posting net income of $2.05 per share in the second quarter of 2008, up 23 % on the previous year.

Avoding the Crisis

BlackRock has emerged relatively unscathed by the subprime crisis, as the conservative investment manager used extensive risk models in late 2005 when deciding not to purchase any more subprime loans. BlackRock played it safe at a time when most large banks and investment firms were doing just the opposite. When the liquidity crisis emerged, BlackRock was well positioned to take advantage of the market, benefiting as investors sought safer investments. They should continue to gain from this trend as investors are not inclined to turn to riskier assets in the presence of sustained market turmoil. Investors will typically stick to money market funds until the markets and overnight rates stabilize.

BlackRock’s CEO, Larry Fink, has a strong track record as well. Fink has a wealth of knowledge about credit securities, as he began his career at First Boston where he was one of the first mortgage-backed securities traders on Wall Street before becoming a Managing Director. Since he founded BlackRock in 1988, it has grown from a New York office with $1 billion in assets into an investment giant managing operations in 20 countries. Since the firm went public at $14 a share in 1999, BlackRock’s share price has peaked over $229 a share.

Industry Leader

BlackRock’s Solutions business is currently benefiting from their advisory services and risk management, which have received increased demand due to market turmoil. When J.P.