From Nasdaq: 2024-05-15 06:15:00

Barron’s published an article about bank-stock fund manager David Ellison’s portfolio of financial services stocks in his Hennessy Large Cap Financial Fund (HLFNX). Ellison has spent 41 years in the investment industry, managing the fund for the past 27 years. His top 10 holdings include Morgan Stanley, Berkshire Hathaway, and Truist Financial.

Morgan Stanley (MS) is Ellison’s 12th-largest holding, with a 4.81% weighting. Former CEO James Gorman’s leadership saw significant growth in revenues, driven by expansions into asset and wealth management. Two acquisitions in 2020 boosted revenues, positioning wealth management as a key driver for future growth.

Berkshire Hathaway (BRK-A,BRK-B) is Ellison’s 15th-largest holding, with a 4.29% weighting. Warren Buffet reduced Berkshire’s Apple holdings by 13% to strengthen its cash position, which exceeds $188 billion. Despite meme-stock mania, Buffet’s strategic moves make sense in the current market climate.

Truist Financial (TFC) is Ellison’s 21st-largest holding, with a 1.99% weighting. The company recently completed the sale of its stake in Truist Insurance Holdings to enhance its financial profile and core banking businesses. Moody’s downgraded Truist’s debt, indicating differing opinions on the impact of the sale on the bank’s revenue diversification.

Read more at Nasdaq: Banking on Experience: 3 Financial Stock Picks from Wall Street’s Longest-Serving Guru