In this article, we discuss 5 best cryptocurrency stocks to buy according to hedge funds. If you want to see more stocks in this selection, check out 11 Best Cryptocurrency Stocks To Buy According To Hedge Funds.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
In November 2022, JPMorgan Chase & Co. (NYSE:JPM), which is one of the largest banks in the United States, registered a trademark for cryptocurrency wallets. The bank is placing its focus on providing cryptocurrency payment services, which may include crypto payment processing, virtual checking accounts, and other similar services. It is one of the best crypto stocks to monitor. On March 22, JPMorgan Chase & Co. (NYSE:JPM) declared a $1.00 per share quarterly dividend, in line with previous. The dividend is payable on April 30, to shareholders of record on April 6.
On March 13, Wells Fargo upgraded JPMorgan Chase & Co. (NYSE:JPM) to Overweight from Equal Weight with a price target of $155, up from $148. The analyst believes that JPMorgan Chase & Co. (NYSE:JPM) embodies the firm’s banking theme of “Goliath is Winning” and will benefit from market share gains and a more diversified business in uncertain times. The analyst also noted that JPMorgan Chase & Co. (NYSE:JPM) has a strong balance sheet and has weathered past economic downturns, making it well-prepared for future challenges. Despite ongoing investments, Wells Fargo expects JPMorgan’s revenue to grow faster than expenses.
According to Insider Monkey’s Q4 data, 100 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), compared to 110 funds in the earlier quarter. Edgar Wachenheim’s Greenhaven Associates is a prominent stakeholder of the company, with 4.8 million shares worth $643 million.
Here is what Vltava Fund has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2022 investor letter:
“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.
JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.
A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”
