In this article, we will take a look at the 13 High-Quality S&P 500 Financial Stocks According to Hedge Funds.
Interest rates are once again in the spotlight among investors in February 2026 amid uncertainty over the next phase of U.S. monetary policy. On February 18, 2026, CNBC reported the minutes from the January 27–28 meeting of the Federal Reserve. The minutes revealed disagreements between officials concerning the future course of interest rates. The benchmark federal funds rate was held steady at 3.5%–3.75%. However, there were arguments for pausing further rate cuts until inflation shows clearer progress toward the 2% target. These disagreements make it difficult to price the cost of capital for the coming period.
Under this market tension, the focus is shifting toward stability. Instead of trying to guess what the Federal Reserve will do next, it is sensible to look for companies that can remain stable and handle these changes. One viable choice is to find strong stocks with support from major professional investors. In this regard, we have compiled a list of 13 high-quality financial stocks that are part of the S&P 500 and are preferred by hedge funds.
With that backdrop, let’s explore our selection of high-quality S&P 500 financial stocks according to hedge funds.
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Our Methodology
We compiled our list by screening for S&P 500 financial-sector companies that delivered positive earnings growth over the last five years and maintained a manageable leverage level (debt-to-equity ratio below 1.0). We then ranked stocks in ascending order by the number of hedge funds holding a stake in these companies. For this purpose, we used Q4 2025 hedge fund data from Insider Monkey’s database. All the pricing data are as of market close on February 24, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Assurant, Inc. (NYSE:AIZ)
Number of Hedge Fund Holders: 29
Assurant, Inc. (NYSE:AIZ) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 23, 2026, Morgan Stanley analyst Bob Huang maintained a Hold rating on Assurant, Inc. (NYSE:AIZ) with a price target of $248. This marks the second update from Morgan Stanley this month, as the analyst previously reiterated the Hold rating on the stock on February 13, 2026.
Separately, on February 20, 2026, Truist Financial analyst Mark Hughes reiterated a Buy rating on Assurant, Inc. (NYSE:AIZ).
Earlier this month, on February 11, 2026, Assurant, Inc. (NYSE:AIZ) reported its earnings results for the fourth quarter and full year 2025, where it highlighted its ninth consecutive year of profitable growth. Excluding reportable catastrophes, the company’s adjusted EPS stood at $22.81 for the full year – a 12% increase compared to the previous year. The company attributed the growth to strong performance in Global Lifestyle and Home, increased investment income, and favorable loss experience in Auto. For 2026, it has set a share repurchase range of $250 million to $350 million.
Founded in 1892, Assurant, Inc. (NYSE:AIZ) is a leading global business services company specializing in lifestyle and housing protection, with headquarters in Georgia.
