Bank Of America, Walt Disney Among Top 5 Picks For Institutional Investors, Leaving Tesla, Nvidia Behind

As hedge funds begin to report their portfolio adjustments, Benzinga looked at stocks that highlight the strategic moves of institutional investors. These stocks tend to reflect the potential for significant market shifts, and some believe they can unlock hidden value.

We looked at the heat map for "increased" interest from 13F filers during the fourth-quarter of 2023. To our surprise, these include neither Tesla TSLA, nor Nvidia NVDA

Here are the top five stocks that garnered the maximum interest from the 13F filing community this past quarter:

Bank of America

Bank of America Corp BAC is known for its extensive retail and commercial banking services. The company has a global presence, emphasis on technology and innovation, commitment to corporate social responsibility, and involvement in significant mergers and acquisitions.

Over Q4, institutional ownership (as represented by 13F filers) in Bank of America stock increased by 1.58%. The stock now features in the top 10 holdings of 96 filers, up 41% QoQ. The number of institutional filers investing into Bank of America stock for the first time, also bumped up significantly – 334 filers in Q4, relative to 146 new filers in Q3 – a 128.77% hike.

Warren Buffett‘s Berkshire Hathaway is the top institutional investor into Bank of America stock with a 12.8% ownership. The stock commands just over 10% of the Berkshire portfolio.

Walt Disney

Walt Disney Co DIS is known for creating and building one of the world’s most iconic entertainment conglomerates encompassing animation, theme parks, film, television, and various other media ventures.

Over Q4, institutional ownership in Walt Disney stock increased by close to 5%. The stock now features in the top 10 holdings of 55 filers, up 10% QoQ. The number of institutional filers investing into Walt Disney stock for the first time, also bumped up significantly – 304 filers in Q4, relative to 158 new filers in Q3 – a 92.41% hike.

Vanguard Group is the top institutional investor in Disney stock, with 8.3% ownership of the company.

JD.com

JD.com Inc JD is known for being one of China’s largest e-commerce and retail companies. JD specializes in online shopping and a wide range of products, including electronics, apparel, and fresh groceries.

Over Q4, institutional ownership in JD.com stock increased by 1.98%. The stock now features in the top 10 holdings of 20 filers, up 11.11% QoQ. The number of institutional filers investing into JD.com stock for the first time, also bumped up significantly – 92 filers in Q4, relative to 47 new filers in Q3 – a 95.74% hike.

The founder and former CEO of JD.com, Liu Qiangdong, is the top institutional investor in the stock with 22.7% ownership.

Array Technologies

Array Technologies Inc ARRY is known for designing and manufacturing solar tracking systems. The company plays a significant role in the renewable energy industry by enhancing the efficiency of solar power generation.

Over Q4, hedge fund ownership in Array Technologies stock increased by 9.77%. The stock now features in the top 10 holdings of 11 filers, up 83.33% QoQ. The number of institutional filers investing into Array Technologies stock for the first time, however, decreased to 50 filers in Q4, relative to 55 new filers in Q3 – down 9%.

BlackRock is the top institutional owner of Array Technologies stock with 11.6% ownership.

Spirit AeroSystems

Spirit AeroSystems Holdings Inc SPR is known for being a leading aerospace manufacturer. The company specializes in the design and production of aerostructures, including fuselages, wings, and other critical components for commercial and defense aircraft.

Over Q4, hedge fund ownership in Spirit AeroSystems stock increased by 43%. The stock now features in the top 10 holdings of 6 filers, up 200% QoQ. The number of institutional filers investing into Spirit AeroSystems stock for the first time, also bumped up significantly – 72 filers in Q4, relative to 34 new filers in Q3 – a 111.76% hike.

Vanguard Group is the No. 1 institutional investor in Spirit AeroSystems stock with an over 10% ownership.

The top 5 stocks identified above serve as noteworthy indicators of evolving market preferences. The decisions made by institutional investors in Q4 2023 reflect a collective belief in the growth potential and strategic positioning of these tech companies.

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Image created using artificial intelligence via MidJourney.