5 Biggest Publicly Traded Asset Managers

3. State Street Corporation (NYSE:STT)

AUM: $3.79 trillion

State Street Corporation (NYSE:STT) offers an array of financial services and products to institutional investors on a global scale. These encompass investment management strategies and products like core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities, as well as alternative investment strategies.

According to Insider Monkey’s second quarter database, 32 hedge funds were bullish on State Street Corporation (NYSE:STT), compared to 40 funds in the prior quarter. Harris Associates is the biggest stakeholder of the company, with 6.8 million shares worth $498.1 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.”