In this article, we discuss 5 best asset management stocks to buy according to hedge funds. If you want to see more stocks in this selection, check out 10 Best Asset Management Stocks To Buy According To Hedge Funds.
5. State Street Corporation (NYSE:STT)
Number of Hedge Fund Holders: 40
State Street Corporation (NYSE:STT) provides a range of financial products and services to institutional investors worldwide, including investment management strategies and products, such as core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities, and alternative investment strategies.
On April 18, Barclays analyst Jason Goldberg maintained an Overweight rating on State Street Corporation (NYSE:STT) but decreased the target price on the shares from $102 to $100. The analyst cited the company’s Q1 earnings, which were lower than expected due to lower net interest income and higher-than-anticipated provision, as the reason for the price target adjustment.
According to Insider Monkey’s fourth quarter database, 40 hedge funds were bullish on State Street Corporation (NYSE:STT), compared to 38 funds in the prior quarter. Harris Associates is the biggest stakeholder of the company, with 5.6 million shares worth $436.4 million.
Oakmark Equity and Income Fund made the following comment about State Street Corporation (NYSE:STT) in its Q1 2023 investor letter:
“The Oakmark Equity and Income Fund has 29% of its equity portfolio in financials. This made the March sell-off painful, but we do not believe that this has meaningfully changed the value of most of our financial equity holdings. In fact, we were adding to financial positions throughout March. We believe that one way to analyze our financial holdings is to look at them in different buckets given their various business models and risk profiles. Almost 30% of our financial exposure is in insurance companies and insurance brokers. Insurance companies have very stable liability profiles, so the main risk is a change in asset values. We are comfortable with their investment portfolios and think these stocks are quite attractive. Around 5% of our financials are asset managers. This leaves a little over 40% of the financials exposure in a varied group of banks and lenders. About 5% of that portfolio is in Bank of America and State Street Corporation (NYSE:STT). These two banks are designated as Systematically Important Financial Institutions and are held to higher regulatory standards. State Street is a trust bank that does very little lending, has significant excess capital, and should benefit from rising net interest income.”
