In this article, we discuss 10 finance stocks to buy today according to billionaire Israel Englander.
Israel Englander is the co-founder and chief executive officer of Millennium Management, a New York-based hedge fund and investment management firm that was established in 1989. Israel Englander received a Bachelor’s in Finance from New York University and he also attended the New York University Graduate School of Business Administration.
As of Q4 2021, Israel Englander’s portfolio is worth $196.7 billion and the hedge fund has assets under management of more than $53.5 billion. In November 2021, Millennium Management announced that it is returning approximately $15 billion to investors while simultaneously raising private equity worth billions of dollars to develop a long-term hedge fund strategy. Millennium is one of the top hedge funds on Wall Street, and apart from the financial crisis of 2008, Israel Englander’s fund has consistently reported positive returns since 1990. In 2020, the hedge fund returned 25.6% and by November 2021, the returns recorded were 10.9%.
Israel Englander’s Millennium Management holds stocks from the information technology, healthcare, finance, consumer discretionary, industrials, and communications sectors as of Q4 2021. His most notable securities include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Tesla, Inc. (NASDAQ:TSLA), among others discussed in detail below.
Our Methodology
We used the fourth quarter portfolio of Israel Englander’s Millennium Management to select the hedge fund’s top 10 finance picks for the period.
Israel Englander of Millennium Management
Finance Stocks to Buy Today According to Billionaire Israel Englander
10. Stifel Financial Corp. (NYSE:SF)
Number of Hedge Fund Holders: 23
Stifel Financial Corp. (NYSE:SF) is a Missouri-based financial services and bank holding company that offers retail and global wealth management services to enterprises and high net worth individuals in the United States, the United Kingdom, Europe, and Canada.
Latest securities filings reveal that Israel Englander’s Millennium Management owns 2.6 million Stifel Financial Corp. (NYSE:SF) shares as of Q4 2021, worth $185.8 million. The hedge fund boosted its stake in the company by 17% in the December quarter.
On January 26, Stifel Financial Corp. (NYSE:SF) declared a $0.30 per share quarterly dividend, a 100% increase from its prior dividend of $0.15. The dividend was distributed to shareholders on March 15. Stifel Financial Corp. (NYSE:SF) delivers a dividend yield of 1.72% as of April 20.
JMP Securities analyst Devin Ryan raised the price target on Stifel Financial Corp. (NYSE:SF) to $100 from $93 and kept an Outperform rating on the shares. The analyst cited the company’s Q4 earnings beat, as well as its comp ratio of 57.5% exceeding his 56.0% estimate. The analyst added that Stifel Financial Corp. (NYSE:SF) remains very well positioned for growth across the franchise, and he believes that the management’s base case expectation includes some degree of conservatism as well.
According to Insider Monkey’s Q4 data, 23 hedge funds placed long calls on Stifel Financial Corp. (NYSE:SF), compared to 20 funds in the previous quarter. Ken Fisher’s Fisher Asset Management is a significant stakeholder of the company, with 1.8 million shares worth over $130 million.
In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Tesla, Inc. (NASDAQ:TSLA), Stifel Financial Corp. (NYSE:SF) is a notable stock pick of billionaire Israel Englander.
9. The Carlyle Group Inc. (NASDAQ:CG)
Number of Hedge Fund Holders: 33
Based in Washington, The Carlyle Group Inc. (NASDAQ:CG) is an investment firm that focuses on direct and fund of fund investments. Israel Englander’s Millennium Management held more than 3.5 million shares of The Carlyle Group Inc. (NASDAQ:CG) in Q4 2021, worth $196.3 million, representing 0.09% of the total 13F holdings.
In 2021, The Carlyle Group Inc. (NASDAQ:CG)’s full-year revenue came in at $8.7 billion, compared to $2.9 billion in the prior year. Net income in 2021 stood at approximately $3 billion, up from $348.2 million in 2020. On April 6, The Carlyle Group Inc. (NASDAQ:CG) announced that it closed its second Carlyle Credit Opportunities Fund, raising $4.6 billion, exceeding the target of $3.5 billion.
Oppenheimer analyst Chris Kotowski maintained an Outperform rating on The Carlyle Group Inc. (NASDAQ:CG) on April 13 and raised the firm’s price target on the shares to $80 from $71. While stocks in the Alternative Asset Manager group have been weighed down by macro concerns and rising rates, this is a theme he has “discussed and rejected on many occasions”. He would lean against these fears as the adverse impact of market turmoil seems transitory, but “the upside from deploying ample available dry powder in a dislocated market can produce benefits in performance and fundraising for years to come,” the analyst told investors in a bullish thesis.
Among the hedge funds tracked by Insider Monkey, 33 funds were bullish on The Carlyle Group Inc. (NASDAQ:CG) at the end of December 2021, with collective stakes amounting to $1.5 billion. Panayotis Takis Sparaggis’ Alkeon Capital Management is the biggest position holder in the company, with 8.7 million shares worth $482.2 million.
Here is what Vulcan Value Partners Focus Fund has to say about The Carlyle Group Inc. (NASDAQ:CG) in its Q4 2021 investor letter:
“Carlyle Group Inc., one of KKR’s peers, also was a material contributor during the quarter. The company has deep and growing relationships with capital providers. Carlyle Group enjoys a very stable management fee stream and a proven ability to convert capital into a performance fee stream, both of which lead to a business with a stable and growing intrinsic value. In addition, the company enjoys nice tailwinds of increasing allocations to private and alternative investments.
8. Intercontinental Exchange, Inc. (NYSE:ICE)
Number of Hedge Fund Holders: 56
Intercontinental Exchange, Inc. (NYSE:ICE) was founded in 2000 and is headquartered in Atlanta, Georgia. The company offers regulated exchanges, clearing houses, mortgage technology, data and listing services in the United States, the United Kingdom, the European Union, Singapore, Israel, and Canada.
On February 3, Intercontinental Exchange, Inc. (NYSE:ICE) declared a $0.38 per share quarterly dividend, a 15.2% increase from its prior dividend of $0.33. The dividend was distributed on March 31, and Intercontinental Exchange, Inc. (NYSE:ICE) yields 1.23% as of April 20.
Citi analyst Ben Herbert on April 13 reiterated a Buy recommendation on Intercontinental Exchange, Inc. (NYSE:ICE) but lowered the firm’s price target on the stock to $152 from $160. The analyst reduced multiples on the U.S. exchanges to account for higher geopolitical and macro uncertainty ahead of the Q1 2022 results.
Intercontinental Exchange, Inc. (NYSE:ICE)’s 2021 full-year revenue came in at $7.1 billion, compared to a revenue of $6 billion in the previous year. Net income in 2021 grew 94.26% to $4 billion from $2 billion in 2020.
According to Insider Monkey’s fourth quarter database, 56 hedge funds were bullish on Intercontinental Exchange, Inc. (NYSE:ICE), with combined stakes valued at $3.7 billion, compared to 48 funds in the earlier quarter, holding stakes in the company worth $2.8 billion. William Von Mueffling’s Cantillon Capital Management is the biggest shareholder of Intercontinental Exchange, Inc. (NYSE:ICE), with 3.85 million shares worth $526.5 million.
Here is what Oakmark Funds has to say about Intercontinental Exchange, Inc. (NYSE:ICE) in its Q2 2021 investor letter:
“Intercontinental Exchange is one of the largest and, in our view, most successful financial exchange operators in the world. The company was created through a series of shrewd acquisitions executed by their founder and CEO Jeff Sprecher. Sprecher is one of the more capable CEOs we’ve evaluated, having demonstrated a long history of astute capital allocation and a willingness to act and adapt rapidly to new opportunities and competitive threats. Today, Intercontinental Exchange competes in three primary business segments: exchanges, fixed income/data services and mortgage technology. We believe each of these businesses exhibits attractive economic characteristics and that each should grow earnings well in excess of GDP over the long term. Despite this favorable long-term outlook, the company currently trades at a P/E ratio that is roughly in line with the S&P 500. We believe a business with Intercontinental Exchange’s strong competitive position, excellent management team and attractive growth outlook deserves to trade well above a market multiple. We like buying great businesses at average prices and believe Intercontinental Exchange represents a compelling opportunity to do just that.”
7. Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Holders: 62
Blackstone Inc. (NYSE:BX) is a New York-based alternative asset management firm investing in multiple asset classes including real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt, and public equity. Israel Englander, as of Q4 2021, holds 2.3 million shares of Blackstone Inc. (NYSE:BX), worth $303.8 million, representing 0.15% of the total 13F holdings. The billionaire boosted his stake in the company by 1685% in the December quarter.
Blackstone Inc. (NYSE:BX)’s total revenue for 2021 came in at more than $22 billion, versus a revenue of $6.1 billion in 2020. The company’s 2021 net income stood at $5.85 billion, compared to an income of $1 billion in the prior year.
On January 27, Blackstone (NYSE:BX) declared a $1.45 per share quarterly dividend, a 33% increase from its previous dividend of $1.09. The dividend was distributed to shareholders on February 14 and the stock delivers a yield of 4.16% as of April 20.
Deutsche Bank analyst Brian Bedell maintained a Buy rating on Blackstone (NYSE:BX) and raised the firm’s price target on the shares to $186 from $180 on April 7. The analyst is “growing more cautious” in his long-term outlook for brokers, asset managers, and exchanges heading into the Q1 results.
According to Insider Monkey’s database of elite funds, 62 hedge funds were long Blackstone (NYSE:BX) in the fourth quarter of 2021, up from 54 funds in the preceding quarter. Rajiv Jain’s GQG Partners is a significant stakeholder of the company, with 3.3 million shares worth $429.6 million.
Here is what Artisan Value Fund has to say about Blackstone Inc. (NYSE:BX) in its Q4 2021 investor letter:
“Investment heavyweight Blackstone’s virtuous cycle is in full swing. Throughout Blackstone’s history, excellent investment performance and capital protection have allowed the firm to increase fundraising in existing verticals as well as launch new endeavors. Historically, less than 10% of assets under management mature in any given year, and that number should move lower with continued growth in perpetual capital vehicles. Blackstone’s A+ rated balance sheet and capital-light model are the backbone of its 85% of cash flow distribution policy via a variable quarterly dividend. In short, this is a long-duration fee stream and robust capital-raising engine.”
6. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 65
Morgan Stanley (NYSE:MS) is a New York-based multinational investment bank and financial services company that specializes in sales and commodities trading, prime brokerage, wealth management, and investment management. Israel Englander’s hedge fund owns more than 3 million shares of Morgan Stanley (NYSE:MS) as of Q4 2021, worth $306 million.
Morgan Stanley (NYSE:MS) posted its Q1 2022 financial results on April 14, announcing earnings per share of $2.06, beating analysts’ consensus estimates by $0.34. The $14.38 billion revenue also outperformed market predictions by $1.05 billion. The company declared a $0.70 per share quarterly dividend, in line with previous. The dividend is payable on May 19, to shareholders of the company at the close of business on April 29. Morgan Stanley (NYSE:MS)’s dividend yield on April 20 stood at $3.09%.
On April 18, BMO Capital analyst James Fotheringham raised the firm’s price target on Morgan Stanley (NYSE:MS) to $113 from $110 and reiterated an Outperform rating on the shares following its Q1 “revenue beat”. According to the analyst, Morgan Stanley (NYSE:MS) demonstrated resilience in a volatile quarter. Its shares have “re-rated” but that story “still has legs” as the company’s earnings mix transitions towards more predictable and fast growing revenue streams.
Among the hedge funds tracked by Insider Monkey in the December quarter, 65 funds were long Morgan Stanley (NYSE:MS), collectively holding stakes worth $4.5 billion. Boykin Curry’s Eagle Capital Management is the biggest shareholder of the company, with 14.5 million shares valued at $1.4 billion.
Elite hedge funds are flocking to Morgan Stanley (NYSE:MS), just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Tesla, Inc. (NASDAQ:TSLA).
Here is what Artisan Value Fund has to say about Morgan Stanley (NYSE:MS) in its Q3 2021 investor letter:
“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily de-risked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”
5. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 84
Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company based in Charlotte, North Carolina. Israel Englander’s Millennium Management increased his Bank of America Corporation (NYSE:BAC) stake by 64% in the fourth quarter of 2021, holding more than 4 million shares worth $178 million.
Bank of America Corporation (NYSE:BAC) announced its financial results for the first quarter of 2022, reporting earnings per share of $0.80, exceeding analysts’ consensus estimates by $0.06. The $23.23 billion revenue for the period also surpassed market expectations by $135.77 million. On April 12, Bank of America Corporation (NYSE:BAC) announced that it will redeem on May 4 all €1.5 billion of its floating rate senior notes, due May 4, 2023.
Citi analyst Keith Horowitz maintained a Buy rating on Bank of America Corporation (NYSE:BAC) and reiterated a $47 price target on April 18. He noted that the company’s solid Q1 results were not a surprise. Bank of America Corporation (NYSE:BAC)’s reported earnings slightly exceeded expectations, primarily due to lower credit costs/reserve release and its CET1 ratio declined only 20 basis points, which is much lower than peers, the analyst told investors in a bullish thesis.
Among the hedge funds tracked by Insider Monkey, 84 funds were bullish on Bank of America Corporation (NYSE:BAC) at the end of December 2021, up from 72 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with a position worth approximately $45 billion.
Here is what ClearBridge Investments Large Cap Value Strategy has to say about Bank of America Corporation (NYSE:BAC) in its Q4 2021 investor letter:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, Bank of America benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
4. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 94
Wells Fargo & Company (NYSE:WFC) was founded in 1852 and is headquartered in San Francisco, California. The financial services provided by Wells Fargo & Company (NYSE:WFC) include banking, investment, mortgage, and consumer and commercial finance products.
Securities filings for Q4 2021 reveal that Israel Englander’s Millennium Management held 7.5 million shares of Wells Fargo & Company (NYSE:WFC), worth $361.6 million, representing 0.18% of the total 13F portfolio. The billionaire elevated his Wells Fargo & Company (NYSE:WFC) stake by 452% in the fourth quarter of 2021.
On April 14, Wells Fargo & Company (NYSE:WFC) reported earnings for the first quarter of 2022, posting an EPS of $0.88, exceeding market consensus estimates by $0.07. Revenue for the period dropped 2.61% from the prior-year quarter, reaching $17.59 billion, falling short of analysts’ predictions by $232.28 million.
Barclays analyst Jason Goldberg on April 18 raised the firm’s price target on Wells Fargo & Company (NYSE:WFC) to $64 from $62 and kept an Overweight rating on the shares after the Q1 results. The analyst cited Wells Fargo & Company (NYSE:WFC)’s 2022 net interest income and loan growth outlook, as well as its unchanged expense forecast despite Q1 coming in higher than expected for the price target upgrade.
According to Insider Monkey’s Q4 data, 94 hedge funds held bullish positions in Wells Fargo & Company (NYSE:WFC), compared to 88 funds in the preceding quarter. Boykin Curry’s Eagle Capital Management owned the leading stake in the company, with 20 million shares worth $961.4 million.
Here is what Davis Opportunity Fund has to say about Wells Fargo & Company (NYSE:WFC) in its Q4 2021 investor letter:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund include Wells Fargo.”
3. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 107
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services holding company headquartered in San Francisco, California. Israel Englander’s Millennium Management owned 1.39 million shares of JPMorgan Chase & Co. (NYSE:JPM) in the fourth quarter of 2021, worth roughly $221 million, representing 0.11% of the total 13F holdings.
On April 13, JPMorgan Chase & Co. (NYSE:JPM) reported financial results for the March quarter. The company posted earnings per shares of $2.63, falling short of analysts’ estimates by $0.08. The $30.72 billion revenue outperformed market consensus by $318.51 million.
JPMorgan Chase & Co. (NYSE:JPM) declared on March 15 a $1.00 per share quarterly dividend, in line with previous. The dividend is payable on April 30, for shareholders of record on April 6. The company delivers a dividend yield of 3.04% as of April 20.
Argus analyst Stephen Biggar on April 14 reiterated a Buy rating on JPMorgan Chase & Co. (NYSE:JPM) but lowered the firm’s price target on the shares to $155 from $177. The company’s Q1 results were impacted by a troublesome investment banking environment and a buildup of loss reserves that management attributed to inflation, the Ukraine war, and Russia counterparty risk, the analyst told investors in a research note. However, JPMorgan Chase & Co. (NYSE:JPM)’s trading business was strong and there were increased lending revenues, which benefited from 5% average loan growth.
According to Insider Monkey’s Q4 data, 107 hedge funds placed long calls on JPMorgan Chase & Co. (NYSE:JPM), up from 101 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 7.4 million shares worth $1.17 billion.
Here is what Ariel Investments has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter:
“In our view, inflation will not just be a 2021 phenomenon. Inflationary expectations are only now working themselves into the labor market with historically low unemployment, resurgent labor unions, and higher wages. These labor cost pressures are only starting to show up in the Consumer Price Index. The most recent Producer Price Index showed a +9% year over year increase, the highest since it was created in 2010. Higher input prices generally lead to rising consumer prices.
“In our view, inflation will not just be a 2021 phenomenon.”
Consumer balance sheets are in excellent shape with lower unemployment and banked stimulus checks. A recent analysis from JP Morgan Chase (JPM) showed average checking accounts have 50% higher balances than pre-Covid. The U.S. money supply as measured by M2 (a calculation that includes cash, checking accounts, and “near cash” such as money market securities) is up +38% versus year-end 2019. Higher consumer cash holdings and higher money supply mean more spending and demand for goods. Some emphasize supply issues to explain current inflation. Going forward, we see very strong demand as well, too much money chasing too few goods.”
2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 110
PayPal Holdings, Inc. (NASDAQ:PYPL) is an American multinational financial technology company that provides digital payment solutions in most countries around the world. Israel Englander’s fund boosted his position in PayPal Holdings, Inc. (NASDAQ:PYPL) by 2155% in Q4 2021, with 1.40 million shares worth over $265 million.
On April 18, Credit Suisse analyst Timothy Chiodo reiterated an Outperform rating on PayPal Holdings, Inc. (NASDAQ:PYPL) but lowered the firm’s price target on the stock to $155 from $190 after model updates and increased levels of uncertainty emanating from numerous factors, such as CFO departure, inflationary challenges on low income consumers, discretionary spend, supply chain issues, and higher user churn.
Among the hedge funds tracked by Insider Monkey, 110 funds were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of December 2021, compared to 123 funds in the prior quarter. Terry Smith’s Fundsmith LLP is a significant stakeholder of the company, with 13 million shares worth $2.45 billion.
Here is what ClearBridge Investments Large Cap Growth Strategy has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:
“We entered a position in PayPal in December well aware of the electronic payment platform’s ambitious goals for user growth. The company has started to experience a reduction in revenue growth due to weakening in the macro environment and a deceleration in e-commerce broadly due to reopening headwinds and difficult comps. This led to a sharply reduced outlook for 2022 revenue and long-term earnings that has weighed on the stock. We initiated a position after the shares had already fallen 40% from their all-time high but were wrong in modeling that a muted outlook was already priced in. Nevertheless, we believe PayPal is fundamentally holding share in the industry and is set up for continued growth in e-commerce once reopening headwinds pass. The company onboarded nearly 120 million net new users over the last few years; naturally, many users will churn off the platform. We also see the company’s strategy to add additional use cases to its wallet such as investing, crypto, savings accounts and bill pay as catalysts to accelerate revenue growth over time.”
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is an American multinational financial services corporation that provides credit cards, debit cards, and prepaid cards. Barclays analyst Ramsey El-Assal lowered the firm’s price target on Visa Inc. (NYSE:V) to $260 from $265 and maintained an Overweight rating on the shares on April 4.
Israel Englander’s Millennium Management revealed in securities filings for Q4 2021 that it boosted its Visa Inc. (NYSE:V) stake by 173%, holding approximately 1.4 million shares of the company, worth more than $302 million. Visa Inc. (NYSE:V) represents 0.15% of the total 13F holdings of Israel Englander’s fund.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 142 funds were bullish on Visa Inc. (NYSE:V), with collective stakes exceeding $29 billion. Chris Hohn’s TCI Fund Management held the biggest position in the company, with 23 million shares worth $5 billion.
Here is what Wedgewood Partners has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:
“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American re-engaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparalleled scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”
You can also take a look at 10 Best Stocks to Buy Now According to Billionaire David Harding and Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio.
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Disclosure: None. 10 Finance Stocks to Buy Today According to Billionaire Israel Englander is originally published on Insider Monkey.
