#4. Bank of New York Mellon Corp (NYSE:BK)
– Investors with long positions as of March 31: 52
– Aggregate value of investors’ holdings as of March 31: $5.06 Billion
The hedge fund sentiment towards Bank of New York Mellon Corp (NYSE:BK) climbed during the March quarter, with the number of funds from our system with stakes in the custodian bank increasing to 52 from 49. Nonetheless, the aggregate value of those funds’ equity holdings in BNY Mellon fell to $5.06 billion from $5.93 billion. Nearly 13% of the bank’s outstanding shares were hoarded up by the 52 hedge fund vehicles monitored by our team. Shares of BNY Mellon are up by 0.70% so far in 2016, partially propelled by a strong first quarter earnings report. The financial results for the quarter reflected the positive effect of the Federal Reserve’s first rate hike in almost a decade. The rate hike enabled BNY Mellon to re-impose management fees that have been previously waived on money market funds. Warren Buffett’s Berkshire Hathaway reported owning 20.83 million shares of Bank of New York Mellon Corp (NYSE:BK) in its most up-to-date 13F.
#3. Wells Fargo & Co (NYSE:WFC)
– Investors with long positions as of March 31: 90
– Aggregate value of investors’ holdings as of March 31: $29.76 Billion
Wells Fargo & Co (NYSE:WFC) also received some love from our smaller-sized hedge fund industry during the January-to-March period, after the number of asset managers with long positions in the bank rose by five quarter-over-quarter. Despite an increase in hedge fund interest, the overall value of those positions decreased to $29.76 billion from $32.56 billion. The 90 hedge funds invested in WFC stockpiled roughly 12% of the bank’s total number of outstanding shares. Wells Fargo, the third-largest bank in the U.S. based on assets, may have to increase reserves to cover bad loans issued to the energy industry, despite enjoying higher crude oil prices, according to company officials. Wells Fargo set aside $1.7 billion to cover possible losses on energy loans at the end of the first quarter, up by approximately $500 million quarter-on-quarter. WFC shares are 8% in the red year-to-date. Alex Snow’s Lansdowne Partners has nearly 20.48 million shares of Wells Fargo & Co (NYSE:WFC) in its equity portfolio as of the end of March.