7 Top Stocks Most Bought by Hedge Funds in 2021

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2. Bank of America (BAC)

Rising interest rates may be bad for the stock market as a whole, but they may be extremely beneficial to banks. Banks’ net interest margins are the difference between the interest they pay on deposits and the interest they collect on loans that benefit from higher interest rates. Hedge fund managers’ second-largest holding in 2021 was Bank of America, and fund managers were adding to their positions in the fourth quarter. Bank stocks have long been a favorite of Buffett’s, so it’s no surprise that Bank of America is Berkshire’s second-largest holding. Buffett owns about $38 billion worth of BAC stock.


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