Should You Now Consider Selling Your Bank of America (BAC) Shares?

Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Global Equity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, Aristotle Capital’s Global Equity Composite posted a total U.S. dollar return of -9.19% gross of fees (-9.28% net of fees), compared to the MSCI World Index, which returned -5.15%, and the MSCI ACWI Index, which returned -5.36%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Aristotle Capital Management Global Equity 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 multinational investment bank and financial services holding company with a $288.7 billion market capitalization. Bank of America Corporation (NYSE:BAC) delivered a -19.44% return since the beginning of the year, while its 12-month returns are down by -14.75%. The stock closed at $35.84 per share on May 25, 2022.

Here is what Aristotle Capital Management Global Equity has to say about Bank of America Corporation (NYSE:BAC) in its Q1 2022 investor letter:

“We first invested in Bank of America during the second quarter of 2013. During our near decade as investors, Bank of America closed the chapter on the legacy issues from acquired Countrywide, including mortgage write-downs and substantial legal charges. In addition, it successfully turned the Merrill Lynch franchise into one of the leading U.S. brokerage and advisory firms. Thanks to what we consider to be a strong management team led by CEO Brian Moynihan, the bank went through years of simplification, improved its cost structure and efficiency ratio, and reduced risk. While we believe Bank of America remains a much-improved market leader, we decided to exit our position and use the proceeds to invest in Brookfield Asset Management.”

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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 first quarter of 2022, compared to 84 funds in the previous quarter. Bank of America Corporation (NYSE:BAC) delivered a -19.96% 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 Q1 page.

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