The Smart Money is Pouring into These Financial Stocks: Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), Bank of America Corp (BAC)

In short, this indicates that the funds who were bullish at the end of Q3 used Q4 to bolster their positions. Despite double-digit gains in recent months, Bank of America’s book valuation actually trades at a whopping 48% discount to parity—the lowest in its industry. Like AIG, Bruce Berkowitz holds the largest BAC position of the funds we track.

Wells Fargo & Company (NYSE:WFC) takes the final spot of this top five, and was the only stock of the bunch to see a capital outflow last quarter. Eighty hedge funds held long positions in the bank at the end of Q4, a decrease of 11% from the previous quarter. Interestingly, Warren Buffett did make Wells Fargo his new No. 1 holding, ahead of Coca-Cola for the first time since we began tracking the Oracle in 2010. An underrated benefit of the bank’s Buffett-connection is its ability to play a key role in Berkshire’s acquisition financing, and an above-average dividend yield is an added bonus.

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