5 Best Fintech Stocks to Buy at a Discount

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 100

Bank of America Corporation (NYSE:BAC) shares have lost about 14% in value in 2023 through April 12. Bank of America Corporation (NYSE:BAC)’s PE ratio stands at 9. It is one of the most popular stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the fourth quarter of 2022, 100 hedge funds in Insider Monkey’s database had stakes in Bank of America Corporation (NYSE:BAC). The biggest hedge fund stakeholder of Bank of America Corporation (NYSE:BAC) was Warren Buffett’s Berkshire Hathaway which owns a $33.4 billion stake in the bank.

Recently, BMO Capital Markets Chief Investment Strategist Brian Belski gave favorable comments for Bank of America Corporation (NYSE:BAC), along with several other financial stocks, as the analyst believes the selloff in the sector after the SVB collapse is overdone and presents attractive buying opportunities.

Oakmark Equity and Income Fund made the following comment about Bank of America Corporation (NYSE:BAC) in its Q1 2023 investor letter:

“The Oakmark Equity and Income Fund has 29% of its equity portfolio in financials. This made the March sell-off painful, but we do not believe that this has meaningfully changed the value of most of our financial equity holdings. In fact, we were adding to financial positions throughout March. We believe that one way to analyze our financial holdings is to look at them in different buckets given their various business models and risk profiles. Almost 30% of our financial exposure is in insurance companies and insurance brokers. Insurance companies have very stable liability profiles, so the main risk is a change in asset values. We are comfortable with their investment portfolios and think these stocks are quite attractive. Around 5% of our financials are asset managers. This leaves a little over 40% of the financials exposure in a varied group of banks and lenders. About 5% of that portfolio is in Bank of America Corporation (NYSE:BAC) and State Street. These two banks are designated as Systematically Important Financial Institutions and are held to higher regulatory standards. Our largest single financials holding is Bank of America, which has grown deposits during March, and we believe it is one of the best managed companies in the sector.”