In this article, we will take a look at the 5 financial stocks to buy now according to billionaire Cliff Asness. To read our analysis of Asness’s profile, and investment strategy, as well as the risk/reward and methodology of this list, go directly to the 10 Financial Stocks to Buy Now According to Billionaire Cliff Asness.
5. Everest Re Group, Ltd. (NYSE:RE)
AQR Capital Management’s Stake Value: $188.5 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.42%
Number of Hedge Fund Holders: 28
Everest Re Group, Ltd. (NYSE:RE) is a prominent global provider of insurance and reinsurance. It operates in the U.S., Europe, Singapore, Canada, Bermuda, and other regions through its subsidiaries.
Some analysts are bullish. In July, Jefferies kept a Buy rating on Everest Re Group, Ltd. (NYSE:RE) stock and increased its price target to $344 from $343. Everest Re Group, Ltd. (NYSE:RE) also had strong Q2 results with normalized EPS of $9.79, beating analyst estimates by $1.69.
Many hedge funds like the stock. According to the second quarter database of Insider Monkey, 28 hedge funds were bullish on Everest Re Group, Ltd. (NYSE:RE), with combined stakes worth about $560 million. AQR Capital Management is the biggest stakeholder of Everest Re Group, Ltd. (NYSE:RE) as of the second quarter of 2022, with more than 681,939 shares worth more than $188 million.
4. JPMorgan Chase & Co. (NYSE:JPM)
AQR Capital Management’s Stake Value: $212.3 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.47%
Number of Hedge Fund Holders: 104
JPMorgan Chase & Co. (NYSE:JPM), headquartered in New York City, offers advanced financial solutions to individuals, startups, large enterprises, organizations, governments, and institutions all around the world.
For the past 10 years JPMorgan Chase & Co. (NYSE:JPM) has continuously increased its dividends. As of September 2022, the company has a quarterly dividend of $1.00 per share with a dividend yield of 3.44%.
In Q2 2022, AQR Capital Management owned over 1.9 million shares in JPMorgan Chase & Co. (NYSE:JPM), worth $121.3 million. The company accounted for 0.47% of the hedge fund’s 13F portfolio.
At the end of Q2 2022, 104 hedge funds tracked by Insider Monkey were bullish on JPMorgan Chase & Co. (NYSE:JPM). These stakes are collectively valued at around $5.8 billion. When looking at the institutional investors followed by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in JPMorgan Chase & Co. (NYSE:JPM).
3. Citigroup Inc. (NYSE:C)
AQR Capital Management’s Stake Value: $215 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.48%
Number of Hedge Fund Holders: 82
Citigroup Inc. (NYSE:C), headquartered in New York City, is an investment bank and financial services company. In 1998, Travelers Group and Citicorp, two massive financial conglomerates, merged to form this company. In Q2 2022, AQR Capital Management increased its stake in Citigroup Inc. (NYSE:C) by 105% and now holds shares worth $215 million. It ranks #3 on our list of 10 Financial Stocks to Buy Now According to Billionaire Cliff Asness.
In the second fiscal quarter, Citigroup Inc. (NYSE:C) reported normalized EPS of $2.19 and revenue of $19.64 billion, beating estimates by $0.52 and $1.32 billion respectively.
On July 21, Citigroup Inc. (NYSE:C) declared a quarterly dividend of $0.51 per share, in line with previous. The company’s dividend yield on September 14 came in at 4.16%.
As of Q2 2022, 82 of the 895 hedge funds tracked by Insider Monkey were long Citigroup Inc. (NYSE:C) shares, for a total value of $7.4 billion. Warren Buffett’s Berkshire Hathaway was its largest shareholder with ownership of 55 million shares valued at $2.5 billion.
2. The Allstate Corporation (NYSE:ALL)
AQR Capital Management’s Stake Value: $215 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.48%
Number of Hedge Fund Holders: 37
The Allstate Corporation (NYSE:ALL), headquartered in Northfield Township, Illinois, is an insurance company. Through its subsidiaries, the company engages in the property and casualty insurance business.
Asness’ AQR Capital Management owns more than 1.7 million shares in The Allstate Corporation (NYSE:ALL), representing 0.48% of the hedge fund’s holdings based on the latest security filings.
The Allstate Corporation (NYSE:ALL) has a strong dividend history and has raised its dividend every year for the last 11 years. As of September, the company also has a dividend yield of 2.68% and pays a quarterly dividend of $0.85 per share.
In Q2 2022, The Allstate Corporation (NYSE:ALL) reported quarterly revenue of $12.22 billion, beating estimates by $850 million. Shares of The Allstate Corporation (NYSE:ALL) have also increased over 8.03% year to date.
Many hedge funds like the stock. According to the second quarter database of Insider Monkey, 37 hedge funds were bullish on The Allstate Corporation (NYSE:ALL), with combined stakes worth about $627.3 million.
1. Berkshire Hathaway Inc. (NYSE:BRK-B)
AQR Capital Management’s Stake Value: $237.4 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.53%
Number of Hedge Fund Holders: 109
Berkshire Hathaway Inc. (NYSE:BRK-B), headquartered in Omaha, Nebraska, is a diversified holding company. Its subsidiaries are involved in manufacturing, retailing, services, energy generation and distribution, insurance, freight rail transportation, and other businesses. With robust business fundamentals, Berkshire Hathaway Inc. (NYSE:BRK-B) is generally regarded as a less risky stock in case the economy slows down.
Given Berkshire Hathaway Inc. (NYSE:BRK-B) accounts for 0.53% of AQR Capital Management’s 13F holdings at the end of Q2, the stock ranks #1 on our list of 5 and 10 Financial Stocks to Buy Now According to Billionaire Cliff Asness.
With 109 hedge funds in our database holding positions at the end of Q2, 2022, Berkshire Hathaway Inc. (NYSE:BRK-B) is also one of the most widely held stocks by hedge funds on our list. Among them, Bill & Melinda Gates Foundation Trust is the biggest stakeholder of Berkshire Hathaway Inc. (NYSE:BRK-B) as of the second quarter of 2022, with more than 34 million shares worth more than $9 billion.
You can also take a look at 10 Best Media Stocks To Buy and 13 Largest Lithium Companies In the World.
