In this article, we discuss 5 finance stocks that billionaire David Harding is buying. If you want to see more of his top finance picks, click Billionaire David Harding is Buying These 10 Finance Stocks.
5. Bank of America Corporation (NYSE:BAC)
Winton Capital Management’s Stake Value: $4,440,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 84
Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company, based in Charlotte, North Carolina. On April 12, Bank of America Corporation (NYSE:BAC) announced that it will redeem on May 4 all €1.5 billion of its floating rate senior notes due May 4, 2023. The company previously announced that it would redeem $1.5 billion of its floating rate senior notes due April 2023 and $1.25 billion of its 2.881% fixed/floating rate senior notes due April 2023 on April 24, 2022.
In the fourth quarter of 2021, Winton Capital Management owned 99,806 Bank of America Corporation (NYSE:BAC) shares, worth $4.44 million, representing 0.26% of the hedge fund’s total 13F holdings.
On April 5, Piper Sandler analyst Jeffery Harte slashed the price target on Bank of America Corporation (NYSE:BAC) to $51 from $57 and kept an Overweight rating on the shares. The analyst lowered earnings estimates for the universal banks ahead of the Q1 reports to account for revenue headwinds in the capital markets amid an increasingly uncertain macro environment.
Among the hedge funds tracked by Insider Monkey, 84 funds were bullish on Bank of America Corporation (NYSE:BAC) at the end of Q4, compared to 72 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with more than 1 billion shares worth close to $45 billion.
Here is what ClearBridge Investments has to say about Bank of America Corporation (NYSE:BAC) in its Q1 2021 investor letter:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
4. FTI Consulting, Inc. (NYSE:FCN)
Winton Capital Management’s Stake Value: $5,302,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.32%
Number of Hedge Fund Holders: 20
FTI Consulting, Inc. (NYSE:FCN) is a business advisory company based in Washington, providing corporate finance and restructuring services, as well as financial consultancy to businesses worldwide. David Harding held 34,560 shares of FTI Consulting, Inc. (NYSE:FCN) in the December quarter, worth $5.30 million, representing 0.32% of the total 13F portfolio. Harding’s hedge fund boosted its stake in the company by 39% in Q4 2021.
In 2021, FTI Consulting, Inc. (NYSE:FCN)’s full-year revenue stood at $2.7 billion, compared to $2.4 billion in the prior year. The net income in 2021 increased to $235 million from $210.7 million in 2020.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 20 funds had long positions in FTI Consulting, Inc. (NYSE:FCN), compared to 22 funds in the prior quarter. Seth Rosen’s Nitorum Capital held the biggest stake in FTI Consulting, Inc. (NYSE:FCN), with 401,817 shares worth $61.6 million.
Here is what Upslope Capital Management has to say about FTI Consulting, Inc. (NYSE:FCN) in their Q1 2021 investor letter:
“FTI is a boutique consulting firm with expertise in distress, bankruptcy, and other specialized dispute advisory services. “Long controversy and messiness” is one way to describe a position in FTI. Distress, litigation, regulatory changes, and corporate crises can all benefit FTI. The position is a virtual mirror image to Evercore. When we added Evercore one year ago, it was hard to envision the M&A market quickly turning around and thriving – just as it is hard to envision the restructuring market booming today. Yet, many of the pieces are in place to provide tailwinds for FTI in the coming years (bloated balance sheets, potentially rising rates, court re-openings, elevated potential for regulatory change, and a SPAC boom that could ultimately contribute to demand for FTI’s services).
FTI is a specialty consulting and financial advisory firm generally focused on restructuring, litigation, risk mitigation, and crisis management. Clients include large global corporates, banks, private equity funds, governments, and 96 of the top 100 law firms. (Click here to read full text)
3. Citigroup Inc. (NYSE:C)
Winton Capital Management’s Stake Value: $5,303,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.32%
Number of Hedge Fund Holders: 97
Citigroup Inc. (NYSE:C) is a New York-based financial services holding company that serves consumers, enterprises, and governments in North America, Latin America, Asia, Europe, the Middle East, and Africa with banking, lending, and investment services. David Harding’s Winton Capital Management owned a $5.3 million stake in Citigroup Inc. (NYSE:C) at the end of December 2021, representing 0.32% of the total 13F holdings.
Citigroup Inc. (NYSE:C)’s revenue for the year in 2021 came in at $50.4 billion, below the prior year’s revenue of $58 billion. Net income increased approximately 99% in 2021 to $21.9 billion from $11 billion in 2020.
On April 6, Barclays analyst Jason Goldberg lowered the price target on Citigroup Inc. (NYSE:C) to $67 from $73 and maintained an Equal Weight rating on the shares ahead of the Q1 2022 results. The analyst reduced his Q1 EPS estimate by $0.65 to $1.73, which is still above consensus estimates of $1.68, to account for lower investment banking fees and increased expenditure.
Citigroup Inc. (NYSE:C) declared on April 1 a $0.51 per share quarterly dividend, in line with previous. The dividend is payable on May 27, to shareholders of record on May 2. Citigroup Inc. (NYSE:C)’s dividend yield on April 14 stood at 4.01%.
Among the hedge funds tracked by Insider Monkey at the end of December 2021, 97 funds placed long bets on Citigroup Inc. (NYSE:C), up from 79 funds in the preceding quarter. Harris Associates is the biggest stakeholder of the company, with 28.1 million shares worth approximately $1.7 billion.
Here is what Artisan Value Fund has to say about Citigroup Inc. (NYSE:C) in their Q4 2020 investor letter:
“We fully exited the position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
2. Raymond James Financial, Inc. (NYSE:RJF)
Winton Capital Management’s Stake Value: $14,639,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.88%
Number of Hedge Fund Holders: 32
Raymond James Financial, Inc. (NYSE:RJF) is a Florida-based financial services company that provides investment services, portfolio management services, insurance and annuity products, and mutual funds, among other financial expertise. David Harding’s Winton Capital Management owned 145,804 shares of Raymond James Financial, Inc. (NYSE:RJF), worth $14.6 million. The hedge fund boosted its stake in the company by 16% in Q4 2021.
On March 1, Raymond James Financial, Inc. (NYSE:RJF) declared a $0.34 per share quarterly dividend, in line with previous. The dividend is payable on April 18, to shareholders of the company as of April 4.
Citi analyst William Katz on March 28 raised the price target on Raymond James Financial, Inc. (NYSE:RJF) to $210 from $165 and reiterated a Buy rating on the shares. The analyst added Raymond James Financial, Inc. (NYSE:RJF) to Citi’s U.S. Focus List and opened a “90-Day Positive Catalyst Watch” on the stock. He also revised fiscal 2023 and 2024 earnings estimates, keeping both figures above Wall Street consensus. He noted that the Street is “seemingly deeply asleep at the EPS wheel” in regards to Raymond James Financial, Inc. (NYSE:RJF).
According to Insider Monkey’s Q4 database, 32 hedge funds were long Raymond James Financial, Inc. (NYSE:RJF), with collective stakes amounting to $1.20 billion. Glenn Greenberg’s Brave Warrior Capital held the biggest position in the company, with 2.2 million shares valued at more than $224 million.
1. CME Group Inc. (NASDAQ:CME)
Winton Capital Management’s Stake Value: $16,418,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.99%
Number of Hedge Fund Holders: 55
CME Group Inc. (NASDAQ:CME) is headquartered in Chicago, Illinois, operating as a global financial derivatives exchange. CME Group Inc. (NASDAQ:CME) allows investors exposure to agricultural commodities, currencies, energy, interest rates, metals, stock indexes, and cryptocurrencies futures.
13F filings for Q4 2021 reveal that David Harding’s Winton Capital Management held 71,862 shares of CME Group Inc. (NASDAQ:CME), worth $16.4 million, accounting for 0.99% of the fund’s total portfolio.
On April 13, Citi analyst Ben Herbert maintained a Buy recommendation on CME Group Inc. (NASDAQ:CME) but lowered the firm’s price target on the shares to $275 from $280. The analyst reduced multiples on the U.S. exchanges to account for higher geopolitical and macro uncertainty ahead of the Q1 results.
Insider Monkey’s fourth quarter database suggests that 55 funds held bullish positions in CME Group Inc. (NASDAQ:CME) at the end of December 2021, compared to 64 funds in the earlier quarter. GuardCap Asset Management owned the largest stake in the company, with over 4 million shares worth $927.6 million.
Here is what ClearBridge Investments Select Strategy has to say about CME Group Inc. (NASDAQ:CME) in its Q4 2021 investor letter:
“CME Group, for example, maintains a dominant franchise in electronic commodities and options trading with high incremental margins. Its interest rate trading business had been depressed coming out of the recession, but with a tightening policy environment, it now provides upside optionality that augments robust free cash flow growth and capital return. Willscot Mobile Mini is another compounder that executed well through the pandemic but was not initially recognized for the synergies of its Mobile Mini acquisition. The deal has reduced costs and created greater operating leverage as the company rides the tailwinds of improving industrial production and construction.”
You can also take a look at 10 Software Stocks to Buy Now According to Jim Davidson’s Silver Lake Partners and 10 Consumer Technology Stocks to Invest In According to Ken Fisher’s Fisher Asset Management.
