Here is What Hedge Funds Think About JPMorgan Chase & Co. (JPM)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of JPMorgan Chase & Co. (NYSE:JPM).

JPMorgan Chase & Co. (NYSE:JPM) was in 101 hedge funds’ portfolios at the end of September. The all time high for this statistic is 123. JPM investors should pay attention to a decrease in hedge fund sentiment in recent months. There were 108 hedge funds in our database with JPM positions at the end of the second quarter. Our calculations also showed that JPM ranked 17th among the 30 most popular stocks among hedge funds (click for Q3 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. Now let’s take a glance at the latest hedge fund action encompassing JPMorgan Chase & Co. (NYSE:JPM).

Do Hedge Funds Think JPM Is A Good Stock To Buy Now?

Heading into the fourth quarter of 2021, a total of 101 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -6% from one quarter earlier. On the other hand, there were a total of 118 hedge funds with a bullish position in JPM a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Fisher Asset Management was the largest shareholder of JPMorgan Chase & Co. (NYSE:JPM), with a stake worth $1163.7 million reported as of the end of September. Trailing Fisher Asset Management was Citadel Investment Group, which amassed a stake valued at $762.8 million. Adage Capital Management, AQR Capital Management, and Gardner Russo & Gardner were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Global Frontier Investments allocated the biggest weight to JPMorgan Chase & Co. (NYSE:JPM), around 29.26% of its 13F portfolio. Adam Capital is also relatively very bullish on the stock, designating 17.08 percent of its 13F equity portfolio to JPM.

Judging by the fact that JPMorgan Chase & Co. (NYSE:JPM) has faced declining sentiment from the aggregate hedge fund industry, we can see that there was a specific group of funds who sold off their full holdings heading into Q4. It’s worth mentioning that Peter Seuss’s Prana Capital Management dumped the biggest investment of all the hedgies monitored by Insider Monkey, worth an estimated $50.8 million in stock. David Fear’s fund, Thunderbird Partners, also said goodbye to its stock, about $46.7 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 7 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to JPMorgan Chase & Co. (NYSE:JPM). We will take a look at Visa Inc (NYSE:V), Johnson & Johnson (NYSE:JNJ), Alibaba Group Holding Limited (NYSE:BABA), Walmart Inc. (NYSE:WMT), UnitedHealth Group Inc. (NYSE:UNH), Bank of America Corporation (NYSE:BAC), and The Home Depot, Inc. (NYSE:HD). This group of stocks’ market values are closest to JPM’s market value.

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As you can see these stocks had an average of 91.7 hedge funds with bullish positions and the average amount invested in these stocks was $16250 million. That figure was $5635 million in JPM’s case. Visa Inc (NYSE:V) is the most popular stock in this table. On the other hand The Home Depot, Inc. (NYSE:HD) is the least popular one with only 58 bullish hedge fund positions. JPMorgan Chase & Co. (NYSE:JPM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for JPM is 63.9. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately JPM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on JPM were disappointed as the stock returned -2.4% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.