UBS’ Bottom Quant Stocks In AI, IT, Healthcare & Others: 29 Stocks In All Sectors

Page 24 of 28

5. Raymond James Financial, Inc. (NYSE:RJF)

Number of Hedge Fund Investors In Q2 2024: 22

Sector: Financials

Raymond James Financial, Inc. (NYSE:RJF) is a diversified financial services firm that offers portfolio management, investment banking, mutual funds, and other financial vehicles and services. It is a diversified firm that also has exposure to the retail banking industry. Consequently, Raymond James Financial, Inc. (NYSE:RJF) stands to benefit once investment activity picks up and it rakes in advisory revenue. These are key to letting it taper the effect of lower rates cutting interest income and are quite important since 29% of Raymond James Financial, Inc. (NYSE:RJF)’s $10.9 billion revenue during the nine months ending in June came through interest income. However, the firm can face some near-term asset-related headwinds stemming from its split with a Florida-based advisor.

Raymond James Financial, Inc. (NYSE:RJF)’s management shared details about this split during the Q4 2024 earnings call:

“As we had mentioned in previous quarters, there are a couple of OSJ relationships in our independent contractor division who had decided to leave the platform. It takes time to effect these movements, but a portion of those assets left the firm in the fiscal fourth quarter, totaling roughly $3 billion of AUA. We anticipate approximately $5 billion of assets associated with these firms to complete their transfers off the platform in early fiscal 2025.”

Page 24 of 28