15 Small Cap Financial Stocks Hedge Funds Are Buying

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2. Equitable Holdings, Inc. (NYSE:EQH)

Market Capitalization: $14.381 Billion

Number of Hedge Fund Holders: 47

Equitable Holdings, Inc. (NYSE:EQH) is a diversified financial services company that provides a range of services including retirement planning, wealth management, and asset management. The company mainly focuses on high-return segments such as retirement and assets management and had more than $1 trillion in assets under management as of 2024.

On April 10, Jefferies analyst Suneet Kamath maintained a Buy rating on the stock with a price target of $66. During fiscal 2024, Equitable Holdings, Inc. (NYSE:EQH) experienced strong inflows in retirement and wealth management driven by favorable market performance. This led the assets under management to grow by 10% year-over-year. Management noted that these higher assets under management have led to increased fee-related earnings supporting the company’s growth in 2025 and beyond.

Equitable Holdings, Inc. (NYSE:EQH) is targeting growing annual cash generation to $2 billion by 2027 while maintaining a payout ratio of 60% to 70%. It is one of the best small-cap financial stocks hedge funds are buying.

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