5 Stocks That Benefit From Interest Rate Hikes

3. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 99     

Bank of America Corporation (NYSE:BAC) provides banking and financial products and services. In mid-August, the bank announced that consumer checking account customers saw fees related to overdraft services in June and July decline by 90% compared with the same period a year earlier. The company has more than 35 million consumer checking accounts. The changes relate to the new overdraft policies of the bank as it comes under pressure from fintechs that offer lower-fee accounts and from regulators. Bank of America Corporation (NYSE:BAC) is one of the most prominent gainers amid interest rate hikes. 

On September 12, Deutsche Bank analyst Matt O’Connor kept a Buy rating on Bank of America Corporation (NYSE:BAC) stock and lowered the price target to $45 from $51, noting that banks had seen some relief over the past few weeks from recession fears. 

Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in Bank of America Corporation (NYSE:BAC), with 1 billion shares worth more than $31 billion. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:

“In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.”