What Does Billionaire Ken Fisher See In Bank of America Corp (BAC)?

Page 1 of 2

With the first several weeks of a quarter, hedge funds and other major investors such as billionaire Ken Fisher’s Fisher Asset Management are required to publish 13F filings revealing many of their holdings as of the end of the previous quarter. Fisher’s firm has done its homework early and already released its positions for the end of June. We maintain a database of quarterly filings as part of our work researching investment strategies (for example, we have found that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year) and can see from comparing Fisher’s most recent filing to its previous one that the fund moved heavily into Bank of America Corp (NYSE:BAC) during Q2. It owned close to 22 million shares, up from 1.4 million shares at the beginning of April.

Bank of America Corp (NYSE:BAC) had joined peers Citigroup Inc. (NYSE:C) and JPMorgan Chase & Co. (NYSE:JPM) in our list of the most popular stocks among hedge funds for the first quarter of 2012 (check out the full top ten list). The bank had been the largest position in Platinum Asset Management’s portfolio at the end of Q1; that fund is managed by billionaire Kerr Neilson (find Neilson’s favorite stocks). Billionaire John Paulson’s Paulson & Co. had also owned a significant stake in Bank of America, reporting a position of more than 27 million shares in its own 13F (see Paulson’s stock picks).

Ken Fisher - FISHER ASSET MANAGEMENTIn the second quarter of 2013, Bank of America Corp (NYSE:BAC)’s net income grew over 60% versus a year earlier. This was fueled by an increase in net interest income and successful cost cutting even as noninterest income declined slightly compared to the prior year period. The good results from Q2 brought earnings per share to 42 cents year to date. Wall Street analysts expect the company to deliver a slightly higher pace of earnings for the rest of the year, projecting 92 cents of EPS for 2013; that figure implies a current-year P/E of 16, which is quite a bit above the trailing earnings multiples of many other large banks. However, while the stock price has doubled in the last year as markets have become more confident in megabanks generally, Bank of America Corp (NYSE:BAC) is still valued at a considerable discount to book with a P/B ratio of 0.7. Analysts expect earnings to continue to improve next year and as a result the forward P/E is 11.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!