5 Stocks That Benefit From Interest Rate Hikes

2. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 104   

JPMorgan Chase & Co. (NYSE:JPM) operates as a financial services company worldwide. On September 12, the firm announced that it agreed to acquire a payments startup called Renovit. The startup, based in California, will speed up the ability of the banking giant to roll out new offerings to merchants. The startup already has a presence in large markets like India and the United Kingdom, and has had a working relationship with the bank since 2021. The purchase will also help the bank with a cloud transition. 

On September 12, Deutsche Bank analyst Matt O’Connor kept a Buy rating on JPMorgan Chase & Co. (NYSE:JPM) stock and lowered the price target to $155 from $174, noting that banks had underperformed this year largely driven by recession fears. 

At the end of the second quarter of 2022, 104 hedge funds in the database of Insider Monkey held stakes worth $5.8 billion in JPMorgan Chase & Co. (NYSE:JPM), compared to 110 in the preceding quarter worth $5 billion. 

In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:

“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase (NYSE:JPM) detracted from performance due to the company’s increased expense guidance, announced in January.”