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Why JPMorgan Chase (JPM) Stock is a Compelling Investment Case

On July 8, 2020, Giverny Capital released its Q2 2020 Investor Letter, a copy of which you can download here. The Fund returned 19.64% for the second quarter of 2020. Meanwhile, the benchmark S&P 500 Index gained 20.54%. You should check out Giverny Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Giverny Capital highlighted a few stocks and JPMorgan Chase & Co (NYSE:JPM) is one of them. JPMorgan Chase & Co (NYSE:JPM) is an investment banking company. Year-to-date, JPMorgan Chase & Co (NYSE:JPM) stock lost 28.8% and on July 14th it had a closing price of $98.21. Here is what Giverny Capital said:

“JP Morgan shares have been battered, but the bank earns a well-diversified stream of earnings from investment banking, wealth management and trading as well as commercial banking. While JPM likely will take higher loan loss reserves in coming quarters, it has reported manageable credit losses to date and its hefty dividend seems well supported by earnings.”

JP Morgan Chase JPM Office

pcruciatti / Shutterstock.com

In Q1 2020, the number of bullish hedge fund positions on JPMorgan Chase & Co (NYSE:JPM) stock increased by about 14% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with JPMorgan’s upside potential. Our calculations showed that JPMorgan Chase & Co (NYSE:JPM) is ranked #15 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so we are checking out this tiny lithium stock. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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