Warren Buffett-Favored U.S. Bancorp (USB) Meets Earnings Expectations

What does the smart money think about U.S. Bancorp (NYSE:USB)?

Of the funds tracked by Insider Monkey, Warren Buffett‘s holding company Berkshire Hathaway had the number one position in U.S. Bancorp (NYSE:USB) with around 83.7 million shares worth close to $3.66 billion at the end of March, comprising 3.4% of its total 13F portfolio. Berkshire Hathaway had 80.1 million shares of the company at the end of 2014, buying around 3.6 million shares during the January – March period. The second-largest stake was held by Yacktman Asset Management, led by Donald Yacktman, another acclaimed value investor. Yacktman’s fund held around 11.8 million shares valued at $516.6 million; 2.4% of its 13F portfolio was allocated to the company. Some other hedge funds with similar optimism include Jean-Marie Eveillard’s First Eagle Investment Management, Lou Simpson’s SQ Advisors, Ross Margolies’ Stelliam Investment Management, and Phill Gross and Robert Atchinson‘s Adage Capital Management.

As the data suggested, there must be a pool of hedge fund managers who opened fresh positions in U.S. Bancorp (NYSE:USB). Leading the way was Balyasny Asset Management, led by Dmitry Balyasny, which assembled the biggest new position in U.S. Bancorp (NYSE:USB). Balyasny Asset Management purchased around 1.58 million shares of the company during the first trimester. Israel Englander‘s Millennium Management also initiated a position in the stock during the quarter by purchasing around 280,000 shares. The other funds with new positions in the stock are Nick Niell’s Arrowgrass Capital Partners, Peter Muller’s PDT Partners, and Mitch Cantor’s Mountain Lake Investment Management.

Overall, the hedge funds were bullish on U.S. Bancorp (NYSE:USB) and analysts were expecting the company to do well, as evidenced by the increase in price targets. The company also managed to meet the street’s expectation in earnings for the second quarter. Considering the fact that leading hedge fund managers like Warren Buffett continue to remain bullish on the stock, we recommend this stock as a buy at the moment.

Disclosure: None