1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 106
In January this year Jim Cramer said that “after all” JPMorgan Chase & Co. (NYSE:JPM) was “still cheap.” Earlier this year, when asked whether JPMorgan Chase & Co. (NYSE:JPM) hitting 52-week high makes sense, Jim Cramer said JPMorgan Chase & Co. (NYSE:JPM)’s surge was justified since the bank got a great deal (its First Republic acquisition), in addition to having a “fantastic client base”
Out of the 910 hedge funds tracked by Insider Monkey, 106 hedge funds reported owning stakes in JPMorgan Chase & Co. (NYSE:JPM). The biggest stakeholder of JPMorgan Chase & Co. (NYSE:JPM) during this period was Edgar Wachenheim’s Greenhaven Associates which owns a $699 million stake in the company.
In its Q3 earnings call, JPMorgan Chase & Co. (NYSE:JPM) talked about guidance and future expectations. JPMorgan Chase & Co. (NYSE:JPM) said:
“We now expect 2023 NII and NII ex-Markets to be approximately $88.5 billion and $89 billion, respectively, with the increase driven by slower reprice than previously assumed. Consistent with what we’ve been saying throughout the year, while we don’t know when it will normalize, we do not consider this level of NII to be sustainable. Our outlook for 2023 adjusted expense is now approximately $84 billion.
And as a reminder, this is on an adjusted basis, which excludes legal expense. Also, remember, this outlook excludes the pending FDIC special assessment. And on Credit, we now expect the 2023 Card net charge-off rate to be approximately 2.5%, mostly driven by denominator effects due to recent balanced growth. So to wrap up, we’re pleased with another quarter of strong operating results. Throughout the year, we’ve been pointing out the various sources of significant uncertainty in all of those, including the geopolitical situation, economic outlook, rate environment, deposit reprice and the impact of the Basel III endgame proposal are as prominent now as they have been in the recent past. But as always, we continue to prepare for a range of scenarios and are focused on being there for our clients and customers when they need us most.”
Read the full earnings call transcript here.
Patient Capital Opportunity Equity Strategy made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its Q2 2023 investor letter:
“Many technicians and quantitative strategists expect growth stocks to continue to outperform. There’s a good shot that’s right but longer term, we remain more optimistic on classic value. People remain enamored with growth investing. Value stocks trade at a discount to historical valuations unlike growth stocks, which trade at a premium. Take two high quality stocks as an example, Costco (“growth”) vs. JPMorgan Chase & Co. (NYSE:JPM) (“value”).
JPMorgan (JPM) has also posted excellent performance. It was profitable even during the financial crisis. Since Jamie Dimon took the reins in 2005, it’s grown earnings per share 11% per year (almost exactly the same rate as Costco over the same period). The stock’s annualized gains of roughly the same rate. Its P/E ratio has fallen from 12x in 2005 to 10x today. It guides for a normalized 17% return on tangible capital but earned 23% in the most recent quarter…”
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