Home Depot, Citigroup Enter Top 20 Institutional Stock Holdings

19 Sep

Home Depot, Citigroup Enter Top 20 Institutional Stock Holdings

Home improvement chain The Home Depot (at No. 19) and financial services firm Citigroup (at No. 20) cracked the top 20 list of most widely held equities among global long-only asset managers reporting to eVestment, according to the 2Q 2017 eVestment Institutional Stock Ownership Report.

To make room for those two, Verizon Communications and Royal Dutch Shell fell off the top 20 list from the previous quarter.

Among stocks on the top 20 overall list, Visa rose from the No. 18th most widely held stock in 1Q 2017 to the No. 12 most widely held stock in 2Q 2017. Roche Holdings dropped from the No. 12 most widely held stock in 1Q to the No. 17th most widely held stock in 2Q. And Cisco Systems, the No. 6 most widely held stock in 1Q flipped places with Facebook, previously the No. 7 most widely held stock in 1Q 2017 but moving up to No. 6 in 2Q 2017.

In addition to ranking the top 20 stocks institutional strategies are holding overall, the report highlights ownership and allocation trends among several U.S. large-, mid- and small-cap equity strategies. The report also looks at key global stock trends, including in the United Kingdom, Japan and emerging markets.

Some other interesting points from the new report include:

  • Large cap growth managers’ exposure to technology stocks rose +0.33% during Q2 2017, which was less than the increase for this group’s benchmark.
  • Healthcare stocks provided the starkest contrast quarter over quarter among large cap growth managers, with exposure rising +0.83% compared to a -2.17% decline for the benchmark.
  • UnitedHealth, Amazon and The Home Depot entered U.S. large cap core managers’ top holdings by portfolio weight in Q2 2017 displacing Cisco, Wells Fargo and Bank of America.
  • Health care and technology stocks accounted for 8 out of the top 10 holdings across U.S. mid cap growth strategies and are the only two overweight sectors.
  • SoftBank rose three spots in Q2 2017 to rank as the 2nd largest average Japanese equity portfolio holding. SoftBank was also the most common newly established position in the utilities sector on a net basis.
  • Technology and financials firms represented 8 of the top 10 holdings for emerging markets managers.

The report uses eVestment’s Holdings Analysis solution to review stocks bought, sold or held by asset managers working for institutional investors like pension funds, foundations, endowments, insurance companies and sovereign wealth funds. The ownership trends and weights are the result of overall market movements and increasing or decreasing investor and asset manager interest in particular stocks, sectors or universes and over time offer a unique look at stocks and universes growing in or falling out of favor with institutional investors.

To download a full copy of the report, please click here.