These financial stocks were the most loved and hated by hedge funds during the banking crisis.
by trendswire · 24 May 2023
The banking crisis wreaked havoc on the industry in recent months and hedge funds have been picking winners and losers among financial stocks, according to Goldman Sachs. The Wall Street bank analyzed the holdings of 740 hedge funds with $2.2 trillion in gross equity positions as of early 2023, according to regulatory filings. Goldman then identified the financial and real estate stocks with the biggest recent changes in ownership among hedge funds. Real estate stocks, especially commercial real estate, have also come under pressure as bank shocks amplified the risk of higher interest rates that could complicate debt accumulation. A total of 47 hedge funds added BlackRock, the world’s largest asset manager, to their positions in the first quarter. Meanwhile, Focus Financial Partners, a wealth management firm, also drew a lot of interest from hedge funds. Several hedge funds also bought the dip in Charles Schwab last quarter. The stock is down more than 36% this year, taking its hits along with other financial firms with massive holdings of longer-maturity bonds. Investors feared that the company could suffer a fate similar to that of Silicon Valley Bank and First Republic. Hedge funds also increased their allocation to Fidelity National Info, SLM Corp and Everest Re. As for the top-selling financial and real estate stocks by hedge funds in the first quarter, Welltower topped the list with 26 funds selling the most. they got rid of the name. Welltower, a real estate investment trust that invests in healthcare infrastructure, is still up 16% this year, so it could be a sign some of the hedge funds have turned a profit. Several hedge funds have also reduced their exposure to Visa and CME Group. US Bancorp also saw reduced investor interest. In particular, Warren Buffett’s Berkshire Hathaway dumped its stake in US Bancorp in the first quarter when the “Oracle of Omaha” warned of more bank failures to come. East West Bancorp, Aon, First Interstate BancSystem and Discover Financial Services were other names hedge funds hated last quarter amid the banking chaos.