5 Best Investments During High Interest Rates

4. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 90

Bank of America Corporation (NYSE:BAC) offers a wide range of banking and financial solutions to individuals, small and medium-sized enterprises, institutional investors, major corporations, and governments on a global scale. On July 18, Bank of America Corporation (NYSE:BAC) reported a Q2 GAAP EPS of $0.88, beating Wall Street estimates by $0.05. The revenue of $25.2 billion increased by 2.9% year-over-year, surpassing market expectations by $260 million. Bank of America Corporation (NYSE:BAC)’s earnings increased in the first quarter due to higher income generated from interest payments by customers, a result of the Federal Reserve’s actions in raising borrowing rates. In addition to the above-mentioned revenue numbers, the bank also continued to work toward achieving a goal it set earlier this year – reducing its workforce through natural attrition. Alastair Borthwick, the bank’s chief financial officer said, “That sets us up for a good trajectory on expense going forward,” according to The New York Times. Bank of America Corporation (NYSE:BAC) is one of the best investments during high interest rates. 

According to Insider Monkey’s second quarter database, 90 hedge funds were bullish on Bank of America Corporation (NYSE:BAC), compared to 91 in the prior quarter. Warren Buffett’s Berkshire Hathaway is the top stakeholder of the firm, with close to 1.03 billion shares worth approximately $29.6 billion.

Oakmark Equity and Income Fund made the following comment about Bank of America Corporation (NYSE:BAC) in its second quarter 2023 investor letter:

“Two financial industry companies led the six-month detractors’ list, however. Charles Schwab and Bank of America Corporation (NYSE:BAC) both reported material mark-to-market unrealized losses in their marketable securities holdings, an outcome of the increase in interest rates early in the year.”