Billionaires Love These Finance Stocks

Synchrony Financial (NYSE:SYF)

Number of Billionaires Long The Stock (as of September 30): 12

Total Value of Their Long Positions (as of September 30): $1.66 billion

Stepping up on the lower stool of the podium is Synchrony Financial (NYSE:SYF), which was owned by 12 billionaires at the end of the third quarter, up by 33.3% quarter-over-quarter. The list included Seth Klarman (Baupost Group), with 17.56 million shares, and D.E. Shaw (founded by David E. Shaw), with 8.05 million shares valued at $225 million on September 30.

Synchrony Financial (NYSE:SYF) gained 12.77% during the third quarter and another 24.3% since it ended, taking year-to-date returns close to 11.9%. Shares spiked significantly around the Presidential election, especially after Donald Trump’s victory. In late-October, the company joined R3, a group of businesses working on blockchain technologies. This move made it the first credit-card issuer in a confederacy with the potential to disrupt the payments industry.

Wells Fargo & Co (NYSE:WFC)

Number of Billionaires Long The Stock (as of September 30): 13

Total Value of Their Long Positions (as of September 30): $23.46 billion

The runner-up in this list is Wells Fargo & Co (NYSE:WFC), which counted 13 billionaire supporters in our database as of the end of the third quarter, up by 30% quarter-over-quarter. The largest stake (479.7 million shares) was held by none other than the Oracle of Omaha, Warren Buffett. Also considerable was the position of Ken Fisher (Fisher Asset Management), which comprised 18.18 million shares, or about $805 million in stock as of September 30.

Between July 1 and September 30, Wells Fargo & Co (NYSE:WFC) lost 5.7% of its value on the back of a phony accounts scandal that ended up in the payment of a $185 million fine, the firing of more than 5,000 employees, and the company’s reputation incurring a heavy blow. However, the stock has managed to rebound in the fourth quarter, having gained 16.25% so far, helped by Berkshire Hathaway’s consistent bullishness, and by the rise in the estimated likeliness of a rate hike this year and the resulting surge in the U.S. 10-year Treasury yield.

Bank of America Corp (NYSE:BAC)

Number of Billionaires Long The Stock (as of September 30): 15

Total Value of Their Long Positions (as of September 30): $1.86 billion

Finally, there’s Bank of America Corp (NYSE:BAC), which became the most popular financial stock among the billionaires that we track, after an astounding 66.6% rise in the number of supporters from that wealthy and successful group. Backers as of September 30 included Andreas Halvorsen (Viking Global), with 25.11 million shares, and Ken Griffin (Citadel Advisors), with 11.53 million shares.

Bank of America Corp (NYSE:BAC) has had a good year, with its stock up by more than 20% so far. In the fourth-quarter alone, the stock has spiked upwards by almost 34%. As stated in a recent Insider Monkey article, Bank of America is A Dividend Growth Stock That Benefits From Rising Interest Rates. With an annual yield standing close to 1.5%, and plenty of institutional support (112 hedge funds in our database were long the stock going into the fourth quarter), this is certainly a stock to keep an eye on.

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned in this article.