24. Bank of America (BAC)
Number of Hedge Funds: 118 (2025Q4)
Number of Hedge Funds: 111 (2025Q3)
As of early March 2026, Bank of America (BAC) is being navigated with extreme discipline by both its largest institutional backers and its executive leadership. The current data reveals a strategic shift: while the “smart money” is trimming exposure to lock in gains, the bank is being recognized as one of the most profitable and affordable “mega-cap” plays for the long term.
1. Hedge Fund Activity: Strategic “Trim” by the Oracle
The biggest story in BAC remains the activity of its most famous shareholder, Warren Buffett.
- Berkshire Hathaway’s Exit Strategy: As of the latest filings, Berkshire Hathaway has reduced its position by 9%, bringing its stake down to approximately 517 million shares. Despite this trim, it remains the dominant hedge fund holder with a staggering $28.45 billion investment, representing over 10% of Berkshire’s total portfolio.
- Ken Fisher’s Steady Buy: In contrast, Fisher Asset Management increased its position by 3%, holding roughly 53.7 million shares (valued at $2.96 billion).
- Institutional Consensus: The stock is currently ranked among the “10 Best Affordable Long-Term Stocks to Buy According to Hedge Funds” (as of February 2026), suggesting that while some are taking profits, the institutional “floor” remains very strong.
2. The Bull Case for 2026: Profitability & Dividends
Analysts are closely watching BAC because it is acting as a “backbone” of the financial markets in the current economy.
- Dividend Stability: In February 2026, the company reaffirmed its commitment to shareholders by maintaining its dividend amid strong earnings. It is currently viewed as a top pick for “income-seeking” institutional capital.
- Mega-Cap Resilience: Recent analyst reports (February 13, 2026) highlight BAC as one of the “10 Most Profitable Mega-Cap Stocks to Buy,” citing its dominant market position and strong fundamentals as a hedge against macroeconomic uncertainty.
- Temporary Headwinds: Some analysts have recently cut price targets, citing adjusted provisions for credit losses and a temporary pause in buybacks, which explains some of the cautious “trimming” by hedge funds in Q4.
3. Insider Trading: A Coordinated February “Vesting Event”
The “Insider Roster” shows a massive wave of activity in mid-February 2026. Nearly the entire senior leadership team was active between February 18th and 19th, signaling a synchronized corporate vesting and tax-planning event.
Key Insiders Active (Feb 18–19, 2026):
- Brian Moynihan (Chair & CEO): Active on Feb 18th.
- Alastair Borthwick (EVP & CFO): Active on Feb 18th.
- Geoffrey Greener (Chief Risk Officer): Active on Feb 18th.
- R. Bruce Thompson (Vice Chair): Active on Feb 19th.
- Johnbull Okpara (Chief Accounting Officer): Active on Feb 19th.
Analysis: This level of synchronized activity across the CEO, CFO, and Chief Risk Officer typically reflects the execution of long-term incentive plans. While these often involve sales to cover tax liabilities, the fact that the entire “C-Suite” is active together suggests they are highly aligned with the bank’s 2026 operational roadmap.
Summary Verdict
Bank of America is currently a “Core Value” holding. The 9% trim from Warren Buffett and the recent analyst price-target adjustments reflect a “cooling off” period after a strong run. However, with Fisher Asset Management buying and the bank being crowned as a “Top 10 Mega-Cap” for profitability, the smart money is clearly staying for the long-term dividend and stability story.
