In this article, we discuss Tom Gayner’s Markel Gayner Asset Management’s top 5 finance stocks. If you want our detailed analysis of these stocks, go directly to Tom Gayner’s Markel Gayner Asset Management Portfolio: Top 10 Finance Stocks.
5. The Goldman Sachs Group, Inc. (NYSE:GS)
Markel Gayner Asset Management’s Stake Value: $129,990,000
Percentage of Markel Gayner Asset Management’s 13F Portfolio: 1.64%
Number of Hedge Fund Holders: 61
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the top finance stock picks of Tom Gayner, who owns 343,860 shares in The Goldman Sachs Group, Inc. (NYSE:GS) as of June this year, via Markel Gayner Asset Management. With a stake value of $129.99 million, The Goldman Sachs Group, Inc. (NYSE:GS) represents 1.64% of Gayner’s investment portfolio. The Goldman Sachs Group, Inc. (NYSE:GS) is a multinational investment bank and financial services corporation, specializing in investment management, asset management, securities writing, and prime brokerage, in addition to commercial and investment banking.
Of the 873 hedge funds tracked by Insider Monkey as of the second quarter, 61 funds were long The Goldman Sachs Group, Inc. (NYSE:GS), down from 77 in the preceding quarter.
The Goldman Sachs Group, Inc. (NYSE:GS) announced earnings for Q3 on October 15. The EPS for the period equaled $14.93, exceeding estimates by $4.92. The Goldman Sachs Group, Inc. (NYSE:GS)’s actual revenue totaled $13.61 billion, beating estimates by $1.99 billion.
Oppenheimer analyst Chris Kotowski on October 18 kept an Outperform rating on The Goldman Sachs Group, Inc. (NYSE:GS), raising the price target from $520 to $570, owing to the exceptional Q3 earnings beat.
Here is what Ariel Investments has to say about The Goldman Sachs Group, Inc. (NYSE:GS) in its Q2 2021 investor letter:
“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”
4. Blackstone Inc. (NYSE:BX)
Markel Gayner Asset Management’s Stake Value: $142,982,000
Percentage of Markel Gayner Asset Management’s 13F Portfolio: 1.80%
Number of Hedge Fund Holders: 54
Blackstone Inc. (NYSE:BX) is an American financial services company focused on alternative investment management and private equity. Headquartered in New York, Blackstone Inc. (NYSE:BX) was originally established as a mergers and acquisitions company in 1985, before it expanded into other financial services. Blackstone Inc. (NYSE:BX) is one of the top finance stocks in Tom Gayner’s Q2 portfolio, with Markel Gayner Asset Management owning 1.22 million shares in Blackstone Inc. (NYSE:BX), worth $142.9 million, representing 1.80% of the firm’s Q2 portfolio.
Earnings for the third quarter were posted on October 21 by Blackstone Inc. (NYSE:BX). EPS for the period totaled $1.28, beating estimates by $0.36. Revenue for the quarter came in at $3.04 billion, exceeding estimated revenue by $872.27 million.
BofA analyst Craig Siegenthaler, on November 4, kept a Buy rating on Blackstone Inc. (NYSE:BX), with a $182 price target. The analyst stated that the retail channel will allow Blackstone Inc. (NYSE:BX) to achieve tremendous earnings growth.
As of the second quarter of 2021, 54 hedge funds were long Blackstone Inc. (NYSE:BX), compared to 49 in the preceding quarter.
Here is what Artisan Partners has to say about Blackstone Inc. (NYSE:BX) in its Q2 2021 investor letter:
“Top contributors included The Blackstone Group. Investment stalwart Blackstone Group’s virtuous cycle is in full swing. Throughout Blackstone’s history, excellent investment performance and capital protection have allowed the firm to increase fundraising in existing verticals as well as launch new endeavors. Historically, less than 10% of assets under management matures in any given year, and that number should move lower with continued growth in perpetual capital vehicles. Blackstone’s A+ rated balance sheet and capital-light model are the backbone of its 85% of cash flow distribution policy via a variable quarterly dividend.”
3. BlackRock, Inc. (NYSE:BLK)
Markel Gayner Asset Management’s Stake Value: $184,673,000
Percentage of Markel Gayner Asset Management’s 13F Portfolio: 2.33%
Number of Hedge Fund Holders: 47
Another top finance stock according to Markel Gayner Asset Management is BlackRock, Inc. (NYSE:BLK), which is an American multinational investment management corporation, with clients in over 100 countries. BlackRock, Inc. (NYSE:BLK) is the largest asset manager on a global level. Markel Gayner Asset Management owns stakes valued at $184.67 million in BlackRock, Inc. (NYSE:BLK) as of June this year, which accounts for 2.33% of the firm’s investment portfolio.
BlackRock, Inc. (NYSE:BLK) on October 13 posted Q3 results. The EPS for the quarter came in at $10.95, beating estimated EPS by $1.44. BlackRock, Inc. (NYSE:BLK)’s Q3 revenue was $5.05 billion, surpassing estimates by $230.32 million.
BofA analyst Craig Siegenthaler, on November 3, reinstated coverage of BlackRock, Inc. (NYSE:BLK) with a Buy rating and a $1,080 price target. He believes that BlackRock, Inc. (NYSE:BLK) will continue to outperform since it enjoys a leading market share and an early mover advantage in the financial services industry.
Out of the 873 hedge funds tracked by Insider Monkey, 47 funds were bullish on BlackRock, Inc. (NYSE:BLK) at the end of June this year, up from 42 in the preceding quarter.
Here is what Baron FinTech Fund has to say about BlackRock, Inc. (NYSE:BLK) in its Q1 2021 investor letter:
“During the quarter, we initiated a position in BlackRock Inc., the world’s largest investment manager with $9 trillion in assets under management. BlackRock offers an array of products across equities, fixed income, alternatives, and cash management to institutional and retail investors worldwide. About one-quarter of BlackRock’s assets under management is actively managed, and the rest is in passive index funds and iShares-branded ETFs. The company offers technology services including the investment and risk management platform, Aladdin, as well as other advisory services and solutions. Over the five years ending December 31, 2020, assets under management and earnings per share grew at compound annual growth rates of 13% and 12%, respectively.
We believe BlackRock is well positioned for continued growth given its diverse product offering, global distribution, brand recognition, and capable management team. With most of its assets in index funds and ETFs, BlackRock is a prime beneficiary of the ongoing shift to passive investing. The company also benefits from increasing demand for sustainable investment strategies and “barbell” strategies that use a combination of low-cost index funds, active and illiquid alternatives products. BlackRock fits squarely within our Tech-Enabled Financials theme given its longstanding commitment to innovation and proprietary technology platform, Aladdin, which serves as the investment and risk management system for both BlackRock and a growing number of institutional investors around the world. We expect BlackRock’s earnings per share will continue to grow at a double digit annual rate over a market cycle through a combination of mid-single-digit growth in assets under management from net inflows, market appreciation, low to mid-teens revenue growth in technology services, modest margin expansion, and share repurchases.”
2. Visa Inc. (NYSE:V)
Markel Gayner Asset Management’s Stake Value: $213,404,000
Percentage of Markel Gayner Asset Management’s 13F Portfolio: 2.69%
Number of Hedge Fund Holders: 162
Visa Inc. (NYSE:V) is a California-based financial services mega company that facilitates digital transfer of funds via credit, debit, and prepaid cards. Visa Inc. (NYSE:V)’s cards are available worldwide, and it is one of the most valuable global companies. Visa Inc. (NYSE:V) is also a top finance stock in the investment portfolio of Markel Gayner Asset Management as of June this year, with the investment firm owning 958,040 shares in Visa Inc. (NYSE:V), worth $213.4 million. This stock accounts for 2.69% of the firm’s Q2 portfolio.
On October 26, Visa Inc. (NYSE:V) posted Q3 earnings. The EPS came in at $1.62, beating estimates by $0.08. Visa Inc. (NYSE:V)’s revenue for the third quarter totaled $6.56 billion, exceeding estimated revenue by $45.89 million.
Mizuho analyst Dan Dolev, on November 1, lowered the price target of Visa Inc. (NYSE:V) from $275 to $255, and kept a Buy rating on the shares.
As of the second quarter of 2021, 162 hedge funds monitored by Insider Monkey were reportedly bullish on Visa Inc. (NYSE:V), compared to 164 in the preceding quarter.
Here is what Polen Capital has to say about Visa Inc. (NYSE:V) in its Q3 2021 investor letter:
“Visa Inc. faced pressure as some believe these “old payment infrastructure” businesses will be disrupted by newer fintech companies using blockchain, buy now, pay later (BNPL), or other innovations to provide better/cheaper payment services. However, we believe that some of these technologies have meaningful limitations which could benefit existing payment networks. For example, BNPL transactions are often funded with cards and turn a one-time transaction into many smaller ones with more transaction fees for Visa. Just like with regulation, we continually monitor for competition and technological disruption. As of now, we do not see a significant risk in the foreseeable future to this company.”
1. Brookfield Asset Management Inc. (NYSE:BAM)
Markel Gayner Asset Management’s Stake Value: $466,380,000
Percentage of Markel Gayner Asset Management’s 13F Portfolio: 5.89%
Number of Hedge Fund Holders: 34
Brookfield Asset Management Inc. (NYSE:BAM) is an alternative asset management company, being one of the largest market players in the financial services industry. Brookfield Asset Management Inc. (NYSE:BAM) specializes in private equity, credit, and has controlling investments in the infrastructure, renewable energy, and real estate sectors. The Toronto-based corporation is a top finance stock to invest in, as per Markel Gayner’s Asset Management’s investment portfolio at the end of June this year, with the investment firm owning 8.71 million shares in Brookfield Asset Management Inc. (NYSE:BAM), worth $466.3 million, representing 5.89% of the firm’s 13F portfolio.
As of the second quarter of 2021, 34 hedge funds tracked by Insider Monkey reported owning stakes in Brookfield Asset Management Inc. (NYSE:BAM), worth $1.65 billion. This is compared to the same number of hedge funds in the preceding quarter, with an approximate stake value of $1.38 billion.
Here is what Baron Funds has to say about Brookfield Asset Management Inc. (NYSE:BAM) in its Q2 2021 investor letter:
“The shares of long-term holding Brookfield Asset Management Inc. gained 15% in the most recent quarter. The company is a leading alternative asset manager focused on investing in high-quality real estate and infrastructure related assets that tend to generate predictable and growing cash flows. We remain bullish about the ongoing prospects for Brookfield given the secular growth opportunity for alternative assets, the company’s many competitive advantages including scale, global capabilities, its well known brand name, operating expertise, and performance track record. We hold management in high regard and believe the shares remain attractively valued.”
You can also take a look at Billionaire Stephen Mandel’s Top 10 Stock Picks and Tech Stock Portfolio: 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management.
