Is it a Good Move to Invest in Bank of America (BAC)?

ClearBridge Investments, an investment management firm, published its “Dividend Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Dividend Strategy outperformed its S&P 500 Index benchmark during the second quarter. On an absolute basis, the Strategy had gains in one of the 11 sectors in which it was invested for the quarter: the health care sector. The IT, financials and materials sectors, meanwhile, were the main detractors. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Dividend Strategy mentioned Bank of America Corporation (NYSE:BAC) and explained its insights for the company. Founded in 1998, Bank of America Corporation (NYSE:BAC) is a Charlotte, North Carolina-based financial services company with a $268.3 billion market capitalization. Bank of America Corporation (NYSE:BAC) delivered a -24.93% return since the beginning of the year, while its 12-month returns are down by -14.40%. The stock closed at $33.40 per share on August 04, 2022.

Here is what ClearBridge Dividend Strategy has to say about Bank of America Corporation (NYSE:BAC) in its Q2 2022 investor letter:

“In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.”


Our calculations show that Bank of America Corporation (NYSE:BAC) ranks 20th on our list of the 30 Most Popular Stocks Among Hedge Funds. Bank of America Corporation (NYSE:BAC) was in 99 hedge fund portfolios at the end of the second quarter of 2022, compared to 84 funds in the previous quarter. Bank of America Corporation (NYSE:BAC) delivered a -11.03% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Bank of America Corporation (NYSE:BAC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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