This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Financial Stocks Hedge Funds Are Buying

NEW YORK ( TheStreet) -- Hedge funds continued to shed financials - mostly bank stocks- during the third quarter as mounting concerns about European debt and heightened volatility eroded conviction of the most seasoned of investors.

Appaloosa Management's David Tepper, who made a fortune from bank stocks in 2009, eliminated his position from Bank of America (BAC - Get Report) and Wells Fargo (WFC - Get Report) and cut back his holdings in Citigroup (C - Get Report).

John Paulson, who is having a rough year, unloaded his position in JPMorgan Chase (JPM - Get Report), while paring exposure to Citigroup and Wells Fargo.

Perhaps he decided it was time to cut his losses.

Overall, Citigroup saw the most selling during the quarter among financial stocks, which explains the stock's meltdown in recent months. JPMorgan and Bank of America also saw heavy selling, as did Goldman Sachs (GS)and Morgan Stanley (MS).

Wells Fargo was the only one among the big four to continue to attract some buying interest. With little exposure to Europe, the bank has withstood the volatility in the market.

Still, a look at aggregate 13F filings of hedge funds, reveals some notable buys in financial stocks, including non-bank holding companies. TheStreet parsed through Bloomberg data to see which financial stocks attracted the most hedge fund money in the third quarter. The shortlist does not include real estate investment trusts, which is also classified as financials by Bloomberg.

As always, it is worth remembering that the information in these filings are dated. Positions in the stocks listed below could have changed. Also the regulatory filings do not require institutional investors to disclose short positions, so the portfolio disclosures are incomplete.

Still, here is a glimpse of what the smart money have been betting on recently.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $15.40 -0.77%
BRK.B $144.53 -0.99%
C $51.53 -0.21%
CMA $45.15 -0.57%
JPM $60.62 -0.56%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs