In this article we discuss the 5 stocks that best performing hedge funds are piling into. If you want to read our detailed analysis of these stocks, go directly to the 13 Stocks that Best Performing Hedge Funds are Piling Into.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the stocks that best performing hedge funds are buying:
5. Wells Fargo & Company (NYSE: WFC)
Number of Hedge Fund Holders: 96
Number of Hedge Funds Having Stakes in the Company Out of Top 100 Hedge Funds: 10
Wells Fargo & Company (NYSE: WFC) is a California-based financial services company founded in 1852. It is ranked fifth on our list of 13 stocks that best performing hedge funds are piling into. The stock has offered investors returns exceeding 54% in the past twelve months. According to Insider Monkey calculations, ten hedge funds out of the 100 best performing ones are bullish on Wells Fargo. It is one of the largest banks in the world with close to $2 trillion in assets and equity under management.
On May 19, investment advisory UBS downgraded Wells Fargo & Company (NYSE: WFC) stock to Neutral with a revised target of $47 from $40. The share price of the investment bank dipped over 1.3% in premarket trading after the ratings update.
At the end of the first quarter of 2021, 96 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Wells Fargo & Company (NYSE: WFC), down from 99 in the preceding quarter worth $8.7 billion.
RGA Investment Advisors, in its Q4 2020 investor letter, mentioned Wells Fargo & Company (NYSE: WFC). Here is what the fund has to say in its letter:
“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.”
