5 Best Stocks to Buy Now According to Billionaire Chris Rokos

02. Bank of America Corporation (NYSE:BAC)

Rokos Capital Management’s Stake Value: $130.303 million

Rokos Capital Management’s 13F Portfolio: 3.81%

Number of Hedge Fund Holders: 99

Bank of America Corporation (NYSE:BAC), a financial services firm based in Charlotte, North Carolina, was established in 1998 and has a $283.4 billion market capitalization. It’s a new addition to the Rokos 13F portfolio as the fund has acquired 4.19 million shares of Bank of America Corporation (NYSE:BAC) during Q2, worth roughly $130.303 million.

On September 12, analyst Matt O’Connor with Deutsche Bank cut his price target for Bank of America Corporation (NYSE:BAC) from $51 to $45 while maintaining a Buy rating on the shares. O’Connor informs investors in a research note that although there has been some reprieve in recent weeks, the banks have underperformed this year mostly due to recession fears. According to the analyst, banks are down approximately 25% since their January highs and are pricing in a 55%–60% likelihood of a moderate–to–severe recession.

In its Q2 2022 investor letter, ClearBridge Dividend Strategy mentioned Bank of America Corporation (NYSE:BAC) and explained its insights for the company. Here is what ClearBridge Dividend Strategy has to say about Bank of America Corporation (NYSE:BAC):

“In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.”