Everyday investors may not think they can make trades like a billionaire. But by analyzing the financial sector holdings of 16 billionaire-led hedge funds, The Motley Fool uncovered the key stocks they’re betting on. Read on for a breakdown of those investments and what strategies billionaires use when buying financial sector stocks.
Methodology
The Motley Fool analyzed 16 hedge funds run by billionaires to determine which stocks the wealthiest investors are buying. The analysis is based on these funds’ 2023 Q4 Forms 13F.
The following funds are included in the analysis:
- Citadel (Ken Griffin)
- Renaissance Technologies (Jim Simons)
- Bridgewater Associates (Ray Dalio)
- Carl Icahn’s Personal Holdings (Carl Icahn)
- BlueCrest Capital Management (Michael Platt)
- Millennium Management (Israel Englander)
- Tiger Global Management (Chase Coleman)
- D.E. Shaw & Co. (David Shaw)
- Tudor Investment Corp. (Paul Tudor Jones)
- Coatue Management (Philippe Laffont)
- Two Sigma Investments (John Overdeck and David Siegel)
- The Children’s Investment Fund (Christopher Hohn)
- Soros Fund Management (George Soros)
- Caxton Associates (Bruce Kovner)
- Viking Global Investors (Andreas Halvorsen)
- Elliott Management (Paul Singer)
The top finance stocks billionaires are buying
These are the stocks that appear in the top 10 finance holdings of more than one of the hedge funds analyzed:
| Stock | Number of Funds Stock Appears in Top 10 Finance Holdings |
|---|---|
| Visa (NYSE:V) | 10 |
| CME Group (NASDAQ:CME) | 5 |
| KKR (NYSE:KKR) | 5 |
| Nu Holdings (NYSE:NU) | 5 |
| Progressive (NYSE:PGR) | 5 |
| S&P Global (NYSE:SPGI) | 5 |
| Apollo Global Management (NYSE:APO) | 4 |
| Ally Financial (NYSE:ALLY) | 3 |
| Bank of America (NYSE:BAC) | 3 |
| Cboe Global Markets (BATS:CBOE) | 3 |
| Citigroup (NYSE:C) | 3 |
| HDFC Bank (NYSE:HDB) | 3 |
| Invesco (NYSE:IVZ) | 3 |
| JPMorgan Chase (NYSE:JPM) | 3 |
| KE Holdings (NYSE:BEKE) | 3 |
| KeyCorp (NYSE:KEY) | 3 |
| MetLife (NYSE:MET) | 3 |
| Moody’s (NYSE:MCO) | 3 |
| Wells Fargo (NYSE:WFC) | 3 |
| First Citizens BancShares (NASDAQ:FCNCA) | 2 |
| Goldman Sachs (NYSE:GS) | 2 |
| LPL Financial Holdings (NASDAQ:LPLA) | 2 |
| MarketAxess Holdings (NASDAQ:MKTX) | 2 |
| U.S. Bancorp (NYSE:USB) | 2 |
| Upstart Holdings (NYSE:UPST) | 2 |
Visa is the most commonly owned stock in the top 10 financial holdings of the hedge funds analyzed -- a vote of confidence from billionaires in the company’s stability and potential.
Visa is followed by CME Group, KKR, Nu Holdings, and S&P Global. That group of stocks spans financial services, investment banking and management, and market infrastructure, which is indicative of how the hedge funds analyzed have diversified financial stock holdings.
Eleven of the 25 stocks that appear in the top 10 financial holdings of more than one hedge fund provide banking services, and nine are in investment banking or investment services. Relatively few fintech firms appear in more than one of the hedge funds’ top investments.
That’s a reflection of billionaires’ approach to investing in financial stocks: relying on finance industry stalwarts to balance smaller investments into potential high-growth disruptors.
The top finance stocks billionaires are investing in by hedge fund
Citadel
The top finance stocks held by Citadel
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| JPMorgan Chase | $775,504,126 | 4,623,499 | 0.8% |
| S&P Global | $459,875,127 | 1,043,937 | 0.5% |
| Citigroup | $419,193,253 | 8,149,169 | 0.4% |
| KKR | $324,902,152 | 4,018,244 | 0.3% |
| PNC Financial Services (NYSE:PNC) | $310,844,032 | 2,007,388 | 0.3% |
| Visa | $279,632,041 | 1,074,062 | 0.3% |
| Invesco | $273,169,481 | 7,602,953 | 0.3% |
| Ally Financial | $210,855,585 | 6,038,247 | 0.2% |
| Coinbase (NASDAQ:COIN) | $198,126,805 | 25,411,838 | 0.2% |
| Bank of America | $193,967,752 | 5,760,848 | 0.2% |
- Total value of all financial stock investments: $8.6 billion
- Percent of portfolio in finance stocks: 8.7%
Ken Griffin’s Citadel’s top finance sector investments are largely composed of companies with relatively long, stable track records. The fund takes a relatively cautious approach to the sector: Its top three investments are JPMorgan Chase, S&P Global, and Citigroup. Other household companies such as Bank of America and Visa appear in the funds’ top investments as well.
Citadel’s two most growth-oriented finance sector investments are KKR, a private equity and real estate investment firm, and Coinbase, which offers infrastructure and technology services to support cryptocurrency transactions. Citadel’s investment into Coinbase is the only pure cryptocurrency play in the top 10 financial sector investments among the funds analyzed for this article.
Renaissance Technologies
The top finance stocks held by Renaissance Technologies
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Cboe Global Markets | $352,964,000 | 1,976,724 | 0.5% |
| Visa | $270,565,000 | 1,039,231 | 0.4% |
| CorVel Corporation (NASDAQ:CRVL) | $169,910,000 | 687,310 | 0.3% |
| Nu Holdings | $163,244,000 | 19,594,665 | 0.3% |
| JPMorgan Chase | $154,179,000 | 981,793 | 0.2% |
| WisdomTree (NYSE:WT) | $121,497,000 | 4,087,029 | 0.2% |
| Opendoor Technologies (NASDAQ:OPEN) | $118,346,000 | 26,416,474 | 0.2% |
| CME Group | $101,675 | 482,789 | 0.2% |
| Invesco | $80,490 | 1,701,362 | 0.1% |
| Progressive | $78,573 | 493,300 | 0.1% |
- Total value of all financial sector investments: $1.7 billion
- Percent of portfolio in finance stocks: 2.6%
Jim Simons’ Renaissance Technologies takes a balanced approach to its holdings in the finance sector, which account for just 2.6% of the funds’ overall portfolio.
Its top 10 financial sector stocks are spread across exchanges via Cboe Global Markets and CME Group, payment processing through Visa, banking through JPMorgan Chase, asset management through WisdomTree and Invesco, insurance through CoreVel and Progressive, and fintech via Nu Holdings and Opendoor Technologies.
These holdings suggest a mostly cautious approach to the finance sector, with Nu Holdings and Opendoor as exceptions to a set of stocks that are otherwise mostly large cap and low volatility.
Bridgewater Associates
The top finance stocks held by Bridgewater Associates
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Visa | $282,666,942 | 1,085,719 | 1.6% |
| Progressive | $77,127,677 | 484,227 | 0.4% |
| MetLife | $38,408,106 | 580,797 | 0.2% |
| CoStar Group (NASDAQ:CSGP) | $36,198,686 | 414,220 | 0.2% |
| Citi | $27,787,939 | 540,201 | 0.2% |
| Wells Fargo | $26,175,098 | 531,798 | 0.1% |
| CME Group | $20,736,308 | 98,463 | 0.1% |
| Prudential Financial (NYSE:PRH) | $20,121,296 | 194,015 | 0.1% |
| MarketAxess Holdings | $19,753,025 | 67,451 | 0.1% |
| Chubb (NYSE:CB) | $19,501,314 | 86,289 | 0.1% |
- Total value of all financial sector investments: $0.898 billion
- Percent of portfolio in finance stocks: 5.0%
Ray Dalio’s Bridgewater Associates takes a low-to-moderate risk approach to its investments in the financial sector. The fund’s top finance company holdings are a mix of large-cap stocks and companies that provide foundational financial services.
It would be a stretch to call any of the companies in Bridgewater’s top financial sector investments disruptive. Its largest investments are in the payment processing giant Visa and a pair of insurance leaders, MetLife and Progressive.
That the fund isn’t taking big swings with its top financial sector investments is reflected in the fact that just 5% of Bridgewater’s portfolio is allocated to the sector.
BlueCrest Capital Management
The top finance stocks held by BlueCrest Capital Management
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Apollo Global Management | $17,813,319 | 315,895 | 3.0% |
| Mr. Cooper Group (NASDAQ:COOP) | $9,182,571 | 141,010 | 1.5% |
| Visa | $2,463,952 | 9,464 | 0.4% |
| Bank of America | $1,050,538 | 31,201 | 0.2% |
| Goldman Sachs | $510,759 | 1,324 | 0.1% |
| Morgan Stanley (NYSE:MS) | $461,215 | 4,946 | 0.1% |
| KKR | $356,255 | 4,300 | 0.1% |
| S&P Global | $270,920 | 615 | 0.0% |
- Total value of all financial sector investments: $0.032 billion
- Percent of portfolio in finance stocks: 5.4%
Michael Platt’s BlueCrest Capital Management is top-heavy when it comes to financial sector investments. Two investments account for more than 80% of its finance sector holdings:
- Apollo Global Management makes up 3% of its portfolio but 55% of its finance sector holdings. The company is a leader in alternative asset management.
- Mr. Cooper Group makes up 1.5% of its portfolio, good for 28% of its finance sector investments. The company is a non-bank mortgage and loan origination servicer.
No other finance stock makes up more than 0.4% of BlueCrest’s portfolio. The remainder of its top financial stock holdings are a mix of relatively stable, large-cap companies.
Millennium Management
The top finance stocks held by Millennium Management
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| KKR | Total value of all financial sector investments: $778,691,849 | 9,501,963 | 0.7% |
| Apollo Global Management | $390,279,813 | 4,188,001 | 0.4% |
| Nasdaq (NASDAQ:NDAQ) | $344,561,768 | 5,926,415 | 0.3% |
| Citigroup | $336,298,259 | 6,537,680 | 0.3% |
| S&P Global | $277,772,529 | 630,556 | 0.3% |
| LPL Financial Holdings | $273,017,671 | 1,199,445 | 0.3% |
| KeyCorp | $227,471,328 | 15,796,620 | 0.2% |
| Evercore (NYSE:EVR) | $227,026,284 | 1,327,251 | 0.2% |
| Wells Fargo | $191,342,021 | 3,985,037 | 0.2% |
| Visa | $184,878,440 | 710,115 | 0.2% |
- Total value of all financial sector investments: $8.3 billion
- Percent of portfolio in finance stocks: 7.9%
About 8% of Israel Englander’s Millennium Management portfolio is made up of stocks in the financial sector, but no single investment in that sector makes up more than 0.75% of the fund’s total portfolio.
As a result, Millennium’s financial sector holdings are balanced in terms of allocation. The investments are diversified as well, with companies held in private equity, financial services, and traditional banking.
Evercore, an investment bank, and LPL Financial, an independent broker-dealer, stand out as investments with the potential for more growth and more risk.
Tiger Global Management
The top finance stocks held by Tiger Global Management
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Apollo Global Management | $1,144,857,136 | 12,285,193 | 8.1% |
| Nu Holdings | $171,620,524 | 20,602,704 | 1.2% |
| AltC Acquisition Corp. (NYSE:ALCC) | $32,281,836 | 3,056,992 | 0.2% |
- Total value of all financial sector investments: $1.3 billion
- Percent of portfolio in finance stocks: 9.6%
Tiger Global Management’s top financial holdings are concentrated in Apollo Global Management, which accounts for 84% of its investments in the sector and 8.1% of its entire portfolio.
Chase Coleman’s fund has just two other financial sector investments: Nu Holdings, which makes up 1.2% of its overall portfolio, and AltC Acquisition Corp., a Special Purpose Acquisition Company (SPAC) helmed by OpenAI’s Sam Altman.
Tiger Global’s financial sector portfolio is aggressive. Its strong conviction in Apollo Global Management creates a concentration risk, and the fund’s other two other financial sector holdings are not without risk. AltC Acquisition Corp. is a SPAC, which carries inherent risk, and Nu Holdings is a relatively young fintech company operating in an emerging market.
D.E. Shaw & Co.
The top finance stocks held by D.E. Shaw & Co.
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Nu Holdings | $419,243,085 | 50,329,302 | 0.6% |
| Visa | $256,314,835 | 984,501 | 0.4% |
| LPL Financial Holdings | $227,355,733 | 998,839 | 0.3% |
| American Express (NYSE:AXP) | $224,814,183 | 1,200,033 | 0.3% |
| First Citizens BancShares | $223,653,794 | 157,617 | 0.3% |
| Apollo Global Management | $202,543,246 | 2,173,444 | 0.3% |
| Progressive | $172,160,655 | 1,080,868 | 0.2% |
| Upstart Holdings | $135,836,659 | 3,324,441 | 0.2% |
| KKR | $115,163,128 | 1,408,620 | 0.2% |
| JPMorgan Chase | $114,275,902 | 671,816 | 0.2% |
- Total value of all financial sector investments: $3.6 billion
- Percent of portfolio in finance stocks: 5.3%
David Shaw’s hedge fund, D.E. Shaw & Co., devotes just over 5% of its portfolio to finance sector stocks, and not a single holding in the sector accounts for more than 0.6% of the funds’ total holdings. That’s a reflection of the funds’ approach to investing in finance sector stocks: diversification across different companies, subsectors, and risk profiles.
D.E. Shaw’s top finance sector investment is Nu Holdings, a relatively young fintech company operating in Latin America. Upstart Holdings, an insurance company that leverages AI to assess policies, is another more growth-oriented investment in the funds’ top finance stocks.
Those plays are accompanied by investments in industry leaders such as Visa, American Express, Progressive, and JPMorgan Chase.
Tudor Investment Corp.
The top finance stocks held by Tudor Investment Corp.
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
| Aon (NYSE:AON) | $38,144,573 | 131,072 | 0.5% |
| Wells Fargo | $22,872,879 | 464,707 | 0.3% |
| Visa | $22,606,451 | 86,831 | 0.3% |
| Moody’s | $19,968,942 | 51,129 | 0.3% |
| S&P Global | $17,726,525 | 40,240 | 0.2% |
| HDFC Bank | $16,484,565 | 245,635 | 0.2% |
| Markel Group (NYSE:MKL) | $16,122,965 | 11,355 | 0.2% |
| Willis Towers Watson PLC (NASDAQ:WTW) | $15,477,804 | 64,170 | 0.2% |
| Blue Owl Capital (NYSE:OBDC) | $14,822,085 | 1,000,500 | 0.2% |
| FS KKR Capital (NYSE:FSK) | $13,981,137 | 700,107 | 0.2% |
- Total value of all financial sector investments: $0.597 billion
- Percent of portfolio in finance stocks: 8.3%
Paul Tudor Jones’ Tudor Investment Corp. tilts its top financial holdings toward insurance companies.
Aon, which provides a broad range of insurance services, is the fund’s top financial sector investment. Two other insurance providers appear in the fund’s top 10 financial stocks: Markel Group, which provides specialty insurance and reinsurance products, and Willis Towers Watson PLC, which provides a number of different insurance services.
Tudor is the only fund to hold those three companies in its top 10 financial sector holdings.
Alongside those companies, Tudor’s top 10 is composed of banks, financial services companies, and asset and investment management firms.
The fund’s approach is moderate, with industry leaders like Visa, Moody’s and S&P Global appearing alongside more growth-oriented investments in Blue Owl Capital and FS KKR.
Coatue Management
The top finance stocks held by Coatue Management
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Nu Holdings | $524,972,818 | 63,021,947 | 2.2% |
| First Citizens BancShares | $484,030,532 | 341,114 | 2.0% |
| UBS (NYSE:UBS) | $54,950,181 | 1,778,323 | 0.2% |
| Upstart Holdings | $27,980,601 | 684,792 | 0.1% |
| Ally Financial | $16,522,781 | 473,161 | 0.1% |
| Futu Holdings (NASDAQ:FUTU) | $1,647,695 | 30,161 | <0.1% |
- Total value of all financial sector investments: $1.1 billion
- Percent of portfolio in finance stocks: 5.0%
Philippe Laffont’s Coatue Management hedge fund splits its financial sector investments largely between fintech and traditional bank stocks. Coatue’s financial sector investments are concentrated in two stocks:
- Nu Holdings, a digital banking provider operating in Latin America, is the fund’s top financial sector holding, accounting for nearly half of its financial sector portfolio.
- First Citizens BancShares, a traditional bank which accounts for 40% of the fund’s financial sector holdings.
Coatue’s choice to seek growth in the sector through a potentially disruptive fintech company operating in an emerging market, balanced with a sizable stake in a more proven traditional bank, is similar to the approach other hedge funds have taken with their financial sector investments. What sets Coatue apart is its decision to deploy that strategy largely through just two companies instead of diversifying its financial sector investments across a handful of stocks.
Two Sigma Investments
The top finance stocks held by Two Sigma Investments
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Visa | $265,809,279 | 1,020,969 | 0.6% |
| SoFi Technologies (NASDAQ:SOFI) | $145,472,791 | 14,620,381 | 0.4% |
| Nu Holdings | $137,871,454 | 16,551,195 | 0.3% |
| MetLife | $133,842,954 | 2,023,937 | 0.3% |
| Moody’s | $123,295,105 | 315,688 | 0.3% |
| XP (NASDAQ:XP) | $115,899,816 | 4,445,716 | 0.3% |
| Progressive | $110,733,049 | 695,210 | 0.3% |
| CME Group | $106,844,962 | 507,336 | 0.3% |
| Ares Capital Corporation (NASDAQ:ARCC) | $86,704,542 | 4,328,734 | 0.2% |
| Invesco | $62,289,298 | 2,105,191 | 0.2% |
- Total value of all financial sector investments: $2.1 billion
- Percent of portfolio in finance stocks: 5.3%
Two Sigma Investments, led by billionaires John Overdeck and David Siegel, holds a diversified and balanced set of financial sector stocks.
The fund has taken a moderate approach to the sector, with investments in key, large-cap companies alongside stakes in companies that carry more risk and growth potential. Its top 10 financial sector stocks are composed of payment processors, insurance companies, financial services firms, business development companies, and asset management firms.
Like many other funds analyzed, Visa is Two Sigma’s top financial sector investment. That’s followed by a pair of investments in a pair of companies that seek to shake up the financial services landscape: SoFi and Nu Holdings. Two Sigma is the only fund to feature XP in its top financial sector holdings, which is a fast-growing financial services firm based in Brazil. It offers investment management and financial advisory services.
MetLife, Moody’s, Progressive, and CME Group round out Two Sigma’s investments into solid financial sector leaders.
The Children’s Investment Fund
The top finance stocks held by The Children’s Investment Fund
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Moody’s | $4,706,096,072 | 12,049,611 | 13.1% |
| Visa | $4,373,147,635 | 16,797,187 | 12.2% |
| S&P Global | $3,979,045,798 | 9,032,611 | 11.1% |
- Total value of all financial sector investments: $13.0 billion
- Percent of portfolio in finance stocks: 36.3%
Christopher Hohn’s The Children’s Investment Fund devotes more than one-third of its portfolio to the financial sector and splits its investment roughly evenly into just three companies: Moody’s, Visa, and S&P Global.
While the fund’s financial sector investments are concentrated, the companies selected are industry leaders that enjoy competitive moats and provide essential financial services. The companies themselves reflect a cautious approach, and each covers a different niche within the sector. Still, the heavy concentration creates some inherent risk in the portfolio.
Soros Fund Management
The top finance stocks held by Soros Fund Management
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Cboe Global Markets | $39,879,590 | 223,340 | 1.4% |
| Interactive Brokers Group (NASDAQ:IBKR) | $21,115,708 | 254,713 | 0.8% |
| RenaissanceRe Holdings (NYSE:RNR) | $19,652,920 | 100,270 | 0.7% |
| CME Group | $18,734,976 | 88,960 | 0.7% |
| BGC Group (NASDAQ:BGC) | $16,730,639 | 2,317,263 | 0.6% |
| New York Community Bancorp (NYSE:NYCB) | $15,101,321 | 1,476,180 | 0.5% |
| Allstate (NYSE:ALL) | $13,069,933 | 93,370 | 0.5% |
| KeyCorp | $8,568,000 | 595,000 | 0.3% |
| BrightSphere Investment Group (NYSE:BSIG) | $6,634,974 | 346,293 | 0.2% |
| Corebridge Financial (NYSE:CRBG) | $4,960,140 | 229,000 | 0.2% |
- Total value of all financial sector investments: $0.167 billion
- Percent of portfolio in finance stocks: 6%
George Soros' hedge fund is well-diversified when it comes to financial sector stocks. It includes established key players and a few smaller companies with higher growth potential. That latter category makes up a relatively small percentage of the fund’s financial sector investments, and overall, Soros has taken a cautious approach to his holdings in the sector.
Cboe Global Markets is the top financial sector investment for the fund. The company operates options exchanges worldwide. That’s not the only brokerage in Soros’ top financial sector investments: He’s also taken stakes in Interactive Brokers and CME Group, providing diversification in the subsector.
The rest of the fund’s top financial sector holdings are spread across insurance (RenaissanceRe, Allstate, Corebridge), and banking (New York Community Bancorp, KeyCorp). Soros Fund Management has a small amount of exposure to asset management through its stake in Brightsphere Investment Group, as well as financial services through BGC Group.
Caxton Associates
The top finance stocks held by Caxton Associates
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Bank of America | $27,918,625 | 829,184 | 1.4% |
| Goldman Sachs | $20,183,101 | 52,319 | 1.0% |
| KeyCorp | $16,085,088 | 1,117,020 | 0.8% |
| Fifth Third Bancorp (NASDAQ:FITB) | $14,832,873 | 430,063 | 0.8% |
| Ally Financial | $14,369,964 | 411,511 | 0.7% |
| USB | $14,101,446 | 325,819 | 0.7% |
| CME Group | $13,656,357 | 64,845 | 0.7% |
| MarketAxess Holdings | $8,785,500 | 30,000 | 0.5% |
| HDFC Bank | $8,417,205 | 125,424 | 0.4% |
| Jackson Financial (NYSE:JXN) | $4,603,904 | 89,920 | 0.2% |
- Total value of all financial sector investments: $.200 billion
- Percent of portfolio in finance stocks: 10.3%
Bruce Kovner’s Caxton Associates top financial sector holdings focuses on traditional and investment banks, financial services, and market exchanges. It’s a diversified portfolio showcasing a cautious approach.
Its top two financial sector holdings -- Bank of America and Goldman Sachs -- provide solid stability to the rest of its investments in the sector. KeyCorp, Fifth Third Bancorp, U.S. Bancorp, and HDFC Bank round out its banking investments. Ally Financial offers exposure to a digital-first financial service provider.
Caxton holds three niche finance stocks in its top 10:
- Jackson Financial, one of the largest writers of annuities in the U.S., as well as an investment manager.
- CME Group, which operates markets for futures and options trading.
- MarketAxess Holdings, which operates a platform for trading fixed income securities.
Viking Global Investors
The top finance stocks held by Viking Global Investors
| Stock | Value of Shares | Total Shares | Percent of Portfolio |
|---|---|---|---|
| Visa | $1,481,419,097 | 5,690,106 | 5.4% |
| Progressive | $933,947,678 | 5,863,559 | 3.4% |
| Ameriprise Financial (NYSE:AMP) | $727,136,676 | 1,914,374 | 2.7% |
| HDFC Limited | $653,704,081 | 9,740,785 | 2.4% |
| Cboe Global Markets | $430,775,821 | 2,412,499 | 1.6% |
| USB | $414,173,933 | 9,569,638 | 1.5% |
| MetLife | $371,422,848 | 5,616,556 | 1.4% |
| CBRE Group | $354,631,475 | 3,809,555 | 1.3% |
| Everest Group (NYSE:EG) | $230,640,941 | 652,302 | 0.8% |
| KKR | $115,038,965 | 1,388,521 | 0.4% |
- Total value of all financial sector investments: $5.8 billion
- Percent of portfolio in finance stocks: 21.4%
Andreas Halvorsen’s Viking Global Investors devotes more than one-fifth of its portfolio to the financial sector. Its top 10 financial sector investments are diversified, covering payment processing, insurance, financial advisory, banking, and investment management.
Viking Global’s two largest financial sector investments are in two large-cap industry leaders, Visa and Progressive. Investments in those companies alone accounts for nearly 9% of the fund’s total assets.
Investments in MetLife, CBRE Group, and Cboe Global Markets provide relative stability to Viking Global’s financial sector investments. Its stakes in Everest Group, which provides reinsurance, and KKR, a private equity firm, offers more targeted growth opportunities.
How to invest in the financial sector like a billionaire
There are a few common threads across the top financial sector investments made by the billionaire-led hedge funds that were analyzed. Here are some of the ways they approach that part of the market:
- Diversification is key: Spreading investments across subsectors in the financial industry mitigates risk and provides an opportunity to capture growth. Payment processors, banks, asset managers, and market infrastructure firms are all critical components of the space.
- Balance stability and disruptors: Most funds tilt their financial sector investments toward proven industry leaders and make smaller calibrated investments into riskier but potentially disruptive fintechs.
- Track trends: Traditional banks, payment processors, investment banks, and market infrastructure companies dominate hedge funds’ top financial sector investments, suggesting they see those areas as generating sustainable growth.
American Express is an advertising partner of Motley Fool Money. Ally is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Jack Caporal has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, Cboe Global Markets, CoStar Group, Coinbase Global, CorVel, Goldman Sachs Group, JPMorgan Chase, KKR, Markel Group, MarketAxess, Moody's, Opendoor Technologies, PNC Financial Services, S&P Global, U.S. Bancorp, and Visa. The Motley Fool recommends CME Group, HDFC Bank, Interactive Brokers Group, Nasdaq, Nu Holdings, Progressive, and WisdomTree. The Motley Fool has a disclosure policy.
