"Within the financial space, we own BlackRock (BLK)," Wallace says.
BlackRock reported third-quarter earnings of $642 million, or $3.47 a share, increasing from $554 million, or $3.08 a share in the second quarter, and $595 million, or $3.23 a share, in the third quarter of 2011. Revenue grew 4% sequential and year-over-year, to $2.320 billion in the third quarter. Black Rock's third-quarter adjusted operating margin was 40.7%. The company bought back $1.3 billion in common shares during the first three quarters of 2012.
BlackRock's shares closed at $186.99 Friday, returning 8% year-to-date. Based on a quarterly payout of $1.50, the shares have a dividend yield of 3.21%. The shares trade for 13 times the consensus 2013 EPS estimate of $14.89.
-- Written by Philip van Doorn in Jupiter, Fla.>Contact by Email. Follow @PhilipvanDoorn