In this article, we will discuss the 5 best financial services and bank stocks to buy according to Daniel Johnson’s Gillson Capital based on Q2 2021 holdings of the fund. If you want to read our detailed analysis of Daniel Johnson’s history, investment philosophy, and hedge fund performance, go directly to the 10 Best Financial Services and Bank Stocks to Buy According to Daniel Johnson’s Gillson Capital.
5. SVB Financial Group (NASDAQ:SIVB)
Gillson Capital’s Stake Value: $18.471 million
Percentage of Gillson Capital’s 13F Portfolio: 1.72%
Number of Hedge Fund Holders: 49
On August 10, SVB Financial Group (NASDAQ: SIVB) offered its public offering of 2.2 million shares at a price of $564 per share. The proceeds from the offering are to go towards corporate purposes and supporting capital ratios at both SVB Financial Group (NASDAQ: SIVB) and Silicon Valley Bank.
The hedge fund managed by Daniel Johnson holds close to 33,195 shares in SVB Financial Group (NASDAQ: SIVB) that are worth over $18 million. The hedge fund sentiment of SVB Financial Group (NASDAQ: SIVB) has increased. 49 funds tracked by Insider Monkey held stakes in the company by the end of the second quarter of 2021.
Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ first quarter 2021 investor letter in which it mentioned SVB Financial Group (NASDAQ: SIVB). Here is what the letter said:
“Among our top contributors was SVB Financial. SVB Financial Group is a leading provider of banking services to the innovation economy across the US and in key international markets. Headquartered in Silicon Valley, SVB offers financial products to clients in technology, life science/health care, and private equity/venture capital. Total client funds increased 51% to $243 billion in 2020—one of the company’s strongest years—as investors seek differentiated returns in innovative private companies. SVB’s high level of client service and long experience in the industry give it not only a historical data and knowledge advantage but also a reputational edge. We believe this enables the company to quickly bring products to market and make speedy underwriting decisions. Given SVB’s strong profit growth comes at a time when net interest margins are depressed, we believe shares are priced attractively and added to our position.”
4. Capital One Financial Corporation (NYSE:COF)
Gillson Capital’s Stake Value: $18.847 million
Percentage of Gillson Capital’s 13F Portfolio: 1.76%
Number of Hedge Fund Holders: 64
Capital One Financial Corporation (NYSE: COF) is a holding company that has expertise in auto loans, credit cards, banking, and saving accounts. The company was incorporated in 1994 and ranks fourth on the list of 10 best financial services and bank stocks to buy according to Daniel Johnson’s Gillson Capital.
On July 22, Capital One Financial Corporation (NYSE: COF) reported earnings for the second quarter of 2021. It declared earnings per share of $ $7.71, beating the market predictions by $3.17. In addition, revenue for the second quarter was $7.37 billion, up 12.48% year over year, beating the estimates by over $249 million.
Harris Associates owns more than 6.2 million shares of Capital One Financial Corporation (NYSE: COF) and is, therefore, the biggest shareholder of the company. Gillson Capital currently owns 121,834 shares in the company, which amounts to a worth of $18.847 million.
ClearBridge Investments, an investment management firm, published its Q2 2021 investor letter in which it mentioned Capital One Financial Corporation (NYSE: COF). Here is what to say about the company:
“Portfolio holdings in the communication services and financial sectors also made strong contributions… In financials, Capital One has also benefited, at least indirectly, from government stimulus that has strengthened customer balances sheets and driven credit losses to record lows. Capital One should also benefit from a reopening of the economy and increased discretionary spending.”
3. Signature Bank (NASDAQ:SBNY)
Gillson Capital’s Stake Value: $24.387 million
Percentage of Gillson Capital’s 13F Portfolio: 2.28%
Number of Hedge Fund Holders: 43
Daniel Johnson’s Gillson Capital holds 99,276 shares in Signature Bank (NASDAQ: SBNY), worth over $24 million, representing 2.28% of their portfolio. The hedge fund has increased stakes in the firm by a massive 42% in the second quarter of 2021. 43 funds tracked by Insider Monkey held stakes in the company at the end of the second quarter of 2021. Based on our calculations, Signature Bank (NASDAQ: SBNY) ranks third in our list of the 10 best financial services and bank stocks to buy according to Daniel Johnson’s Gillson Capital.
Harding Loevner, an investment management firm, published its “Global Small Companies Equity Fund” second-quarter 2021 investor letter and discussed its stance on Signature Bank (NASDAQ: SBNY). Here is what Harding Loevner has to say about the firm in its Q2 2021 investor letter:
“First Republic is a large cap company now, but it was a small cap less than ten years ago. Our challenge for the Global Small Companies strategy is to find the next First Republic. Signature Bank, which operates primarily in the large and highly penetrated New York City metro market, is a contender. Many of its clients are small- and medium-sized businesses, with a significant number in commercial real estate and apartment buildings. Rather than 1-800 numbers and phone trees, each Signature client has a single point of contact with a relationship manager and his or her team, who service all of the client’s needs. Signature’s relationship managers have lending authority, and their compensation is linked to their own results. This structure served Signature and its clients well during the pandemic, which was expected to be a disaster for the bank’s commercial real estate portfolio. Its loan deferrals, which peaked at 26% of loans in July 2020, fell to 1.9% by March of this year as the bank worked individually with clients to return them to regular payment status.
Signature’s client relationships also led them to new growth opportunities in cryptocurrency. Three years ago, the bank began offering a digital system to meets its clients need for round-the-clock payments. This eventually led the bank to offer crypto-based payments, services also useful to cryptocurrency exchanges and other players in the digital currency space, which are now using the Signature system and making substantial deposits into the bank.”
2. The Bank of New York Mellon Corporation (NYSE:BK)
Gillson Capital’s Stake Value: $25.967 million
Percentage of Gillson Capital’s 13F Portfolio: 2.43%
Number of Hedge Fund Holders: 52
On September 30, The Bank of New York Mellon Corporation (NYSE: BK) initiated a strategic investment in a data and analytics software firm named Quantexa Technology in an attempt to digitalize its services and processes. The investment was made after a year-long engagement during which The Bank of New York Mellon Corporation (NYSE: BK) used Quantexa’s Graph Network Intelligence, Artificial Intelligence, Master Data Management, and Entity Resolution.
On July 15, The Bank of New York Mellon Corporation (NYSE: BK) declared earnings for the second quarter of 2021. It posted earnings per share of $1.13, beating the estimates by $0.13. Similarly, the revenue was announced to be $3.96 billion which beat the estimated figure by $98.43 million.
Daniel Johnson’s Gillson Capital holds 506,877 shares in The Bank of New York Mellon Corporation (NYSE: BK) worth over $25 million, representing 2.43% of their portfolio. Warren Buffett’s Berkshire Hathaway is the leading shareholder in The Bank of New York Mellon Corporation (NYSE: BK), with over 72 million shares worth more than $3 billion.
1. Raymond James Financial, Inc. (NYSE:RJF)
Gillson Capital’s Stake Value: $ 35.796 million
Percentage of Gillson Capital’s 13F Portfolio: 3.35%
Number of Hedge Fund Holders: 29
Raymond James Financial, Inc. (NYSE: RJF) is an American company that not only provides investment services but also financial services to municipalities, corporations, and individuals. The company is among the largest banking institutions in the United States with its headquarters based in St. Petersburg, Florida, and is given first place in our list of 10 best financial services and bank stocks to buy according to Daniel Johnson’s Gillson Capital.
Raymond James Financial, Inc. (NYSE: RJF) currently has an $18.99 billion market capitalization. On July 28, the company posted earnings per share of $1.83 which beat the estimated EPS by $0.25.
On August 25, Raymond James Financial, Inc. (NYSE: RJF) achieved a new record in financial assets under management as the equity market appreciated. The company’s client AUA increased in value from $908.2 billion in Q2 2020 to $1.18 trillion by the end of the second quarter in 2021.
The hedge fund chaired by Daniel Johnson holds 275,564 shares in Raymond James Financial, Inc. (NYSE: RJF) currently worth over $35 million which represents 3.35% of their portfolio. In addition, Gillson Capital increased stakes in the firm by 20% by the end of the second quarter of 2021. Glenn Greenberg’s Brave Warrior Capital is a leading shareholder in Raymond James Financial, Inc. (NYSE: RJF), with over 1.6 million shares that are worth more than $211 million.
You can also take a peek at the 15 Dividend Stocks People Buy for Early Retirement and 10 Best Tech ETFs to Buy According to Reddit.
