Top 5 Stock Picks of John D. Gillespie’s Prospector Partners

4. U.S. Bancorp (NYSE:USB)

Prospector Partners’ Stake Value: $20,582,000

Percentage of Prospector Partners’ 13F Portfolio: 2.64%

Number of Hedge Fund Holders: 41

U.S. Bancorp (NYSE:USB), a top stock from Prospector Partners’ Q3 portfolio, is a Minnesota-based bank holding company, which is recognized for its subsidiary, U.S. Bank National Association, which is one of the leading American banks offering trust, mortgage, investment, and payment services to corporate, institutional, individual, and government clients. 

Gillespie’s investment firm holds a $20.5 million stake in U.S. Bancorp (NYSE:USB) as of the latest 13F filings, which accounts for 2.64% of the firm’s Q3 portfolio. At the end of June this year, 41 hedge funds monitored by the database of Insider Monkey were long U.S. Bancorp (NYSE:USB), reporting a stake value of $8.3 billion. 

U.S. Bancorp (NYSE:USB)’s Q3 EPS on October 14 came in at $1.30, beating estimates by $0.14. Gerard Cassidy from RBC Capital kept an Outperform rating on U.S. Bancorp (NYSE:USB) on October 15, following the Q3 earnings beat. He also raised the price target from $62 to $66. 

Here is what Mairs & Power has to say about U.S. Bancorp (NYSE:USB) in their Q4 2020 investor letter:

“On the negative side, one of the Fund’s biggest detractor in 2020 was U.S. Bancorp (USB). Like all banks, U.S. Bank was hurt by the difficult interest rate environment and credit cycle concerns. We believe banks are strong enough to survive the current sector doldrums, and they remain some of the market’s most attractive opportunities.”