The financial services sector has entered 2025 on a wave of strong performance and renewed investor interest. This sector consists of banking, payments, insurance, and asset management and is a cornerstone of the global economy.
These stocks didn’t do too well during the 2022 downturn, as there was uncertainty regarding whether or not the Federal Reserve would bail out regional banks. However, after the “mini banking crisis” calmed down, these stocks have performed quite well despite the macro trends being uncertain. And for some stocks, that momentum has been even stronger so far this year. It’s worth looking at why.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Real Estate Stocks that are up the Most in 2025 in another article.
A close up of a person’s hands interacting with a digital financial asset tracker.
Methodology
For this article, I screened the best-performing financial services stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA)
Number of Hedge Fund Holders In Q4 2024: 12
Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) is a Spanish multinational financial services group that provides retail banking, corporate lending, asset management, and investment advisory services across Europe, Latin America, and Turkey.
The stock is up significantly so far in 2025, primarily because of a blowout first quarter, where net attributable profit jumped 23% year-over-year to €2.7 billion, return on equity hit 19.3%, and earnings per share rose 24% to €0.45.
Revenue and earnings both beat analyst expectations, with revenue up 3.9% and profit margin expanding from 29% to 34%. The bank’s tangible book value per share plus dividends increased by 14.1% year-over-year, and loan growth was especially strong, up 15.1% at the group level, with Mexico and Spain leading the way.
Management has emphasized that, while results are strong, they are not upgrading 2025 guidance due to ongoing uncertainty around US tariffs and their impact on Mexico, BBVA’s largest profit center.
ASA stock is up 46.59% year-to-date.
14. ASA Gold And Precious Metals Ltd (NYSE:ASA)
Number of Hedge Fund Holders In Q4 2024: 7
ASA Gold And Precious Metals Ltd (NYSE:ASA) is a closed-end investment fund that seeks long-term capital appreciation by investing primarily in companies engaged in the exploration, development, or mining of gold, silver, platinum, diamonds, and other precious minerals.
The stock has rallied sharply in 2025. The main driver behind this surge has been the significant rise in gold prices, which has boosted the net asset value of ASA’s portfolio and led to a net increase in unrealized appreciation. Net assets reached $523.7 million, and net asset value per share climbed to $27.69.
Another catalyst was the adoption of a limited-duration shareholder rights plan in March 2025, following a court battle with Saba Capital Management, which was attempting to gain control of the fund. The court ruling and the board’s defensive actions reassured shareholders and contributed to the positive momentum. Additionally, ASA’s portfolio is heavily weighted toward small and mid-cap miners, which have benefited from a surge in merger and acquisition activity in the gold sector, as well as from elevated gold prices.
ASA stock is up 48.27% year-to-date.
