In this article, we will take a look at some of the best holding company stocks to invest in.
What if you could invest in multiple businesses, ranging across various sectors and industries, all through one stock? That’s the power of a holding company. The enterprise, operating as the parent company, owns and controls the interests of other businesses, known as the subsidiaries.
In these times of market uncertainty, it’s important to keep stocks that are safe yet valuable, and this is exactly why you should have a stock of a holding company on your radar. From minimal risk to property and tax advantages, the list in favor of investing in such companies goes on.
Of particular importance is the research conducted by David Ficbauer and Maria Reznakova on “Holding company and its performance,” highlighting that the ownership of such stocks translates to improved cash flow management, less need for the capital invested and bank loans, and a better negotiating position with business partners. Given this, we will take a look at some of the best company holding stocks to invest in.
A business person holding a graph representing the performance of the company’s assets investments.
Our Methodology
In selecting the 9 best holding company stocks to invest in, we have only considered those stocks that have positive one-year price targets, as per the analysts at Yahoo Finance. These stocks are then ranked according to the number of hedge fund holdings, extracted from Insider Monkey’s first-quarter database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
9. James River Group Holdings, Ltd. (NASDAQ:JRVR)
Number of hedge fund holdings: 14
The U.S. District Court, Southern District of New York, has dismissed a lawsuit against James River Group Holdings, Ltd. (NASDAQ:JRVR) filed by Fleming Intermediate Holdings LLC. The lawsuit, initiated on July 15, 2024, accused James River Group of securities fraud and violation of contract involving Fleming’s purchase of JRG Reinsurance Company Ltd.
As per the company’s statement, Valdean Langenburg is now the Group Chief Information Officer at James River Group Holdings, Ltd. (NASDAQ:JRVR), with Justin Zaharris promoted to Group Chief Claims Officer. Langenburg takes over the role following the retirement of Thomas Peach on July 4, marking the end of over four decades in the information technology sector, including six impressive years as the CIO of James River Group Holdings, Ltd. (NASDAQ:JRVR).
On the other hand, Zaharris previously served as the Vice President, managing claims for the company’s Excess & Surplus Lines segment. With over 20 years of legal, technical, and operational claims expertise in property and casualty, we have good reason to believe that James River Group Holdings, Ltd. (NASDAQ:JRVR) is set to lead the way, powered by its workforce.
James River Group Holdings, Ltd. (NASDAQ:JRVR), headquartered in Bermuda, is a specialty insurance service provider. With two main segments: Excess and Surplus Lines, and Specialty Admitted Insurance, the company is committed to producing strong returns on tangible equity.
8. Yum China Holdings, Inc. (NYSE:YUMC)
Number of hedge fund holdings: 31
As per the company’s announcement on Tuesday, Mr. Zhe (David) Wei has been appointed to the Board of Directors, increasing the Board to 13 directors, out of which 11 are independent. This appointment, effective August 6, 2025, comes as the company plans to expand through 1,600 to 1,800 net new store openings in 2025.
As the Chairman at Yum China Holdings, Inc. (NYSE:YUMC), Fred Hu, states,
“David brings deep insights in the global and China consumer sectors and significant leadership experience in digital and e-commerce.”
In its recent earnings, management pointed to a brighter future, one that is expected to deliver $3 billion to shareholders between 2025 and 2026, in addition to the $1.5 billion it returned to shareholders throughout 2024. Additionally, Yum China Holdings, Inc. (NYSE:YUMC) is dedicated to strategically increasing the mix at a guided range in the years ahead. It’s no secret that the giant has placed “accelerating growths” on top of its menu.
Yum China Holdings, Inc. (NYSE:YUMC) is a Chinese food powerhouse that owns, manages, and franchises restaurants. Incorporated in 1987, the company operates through two segments: KFC and Pizza Hut.