Given the importance of the financial sector in the global economy, investors may consider investing in financial stocks such as Goldman Sachs Group, Inc. (NYSE:GS), Mastercard, Inc. (NYSE:MA), and Visa, Inc. (NYSE:V). These companies constitute the top three financial picks in the portfolio of leading hedge fund expert Christopher Niemczewski of Marshfield Associates.
TipRanks simplifies this process by offering tools like Top Hedge Fund Managers, which rank professionals based on success rates, average returns, and the significance of their trades. Currently, Niemczewski of Marshfield Associates tops the list among 483 covered managers.
Since June 2013, Niemczewski’s portfolio has gained 467.74% and witnessed an average return of 18.85% in the last 12 months. A majority of the hedge fund manager’s investments are focused on the Consumer Cyclical sector (42.03%), followed by the financial sector (37.36%).
Let’s delve deeper.
Goldman Sachs Group
Goldman Sachs is a global investment bank and financial services firm. The stock forms 6.46% of Niemczewski’s portfolio.
Last week, Wells Fargo analyst Mike Mayo raised the price target on Goldman Sachs to $393 from $390 and kept a Buy rating on the stock.
Overall, Goldman Sachs stock has a Moderate Buy consensus rating based on 11 Buys and five Holds. Further, the average price target of $388.87 implies a 2.2% upside potential to current levels. So far in 2023, GS shares have gained 13.4%.
Mastercard
Mastercard is a multinational financial services company specializing in payment technology and services. The stock constitutes 4.72% of Niemczewski’s portfolio.
On December 12, Jefferies analyst Surinder Thind raised the price target on MasterCard to $480 from $425 while maintaining a Buy rating.
With 23 Buy and two Hold ratings, the stock commands a Strong Buy consensus rating. On TipRanks, the average Mastercard stock price target of $455.87 implies an 8.9% upside potential from current levels. Year-to-date, MA stock has gained 21.4%.
Visa, Inc.
Visa is a multinational financial services corporation that facilitates electronic fund transfers worldwide. The stock claims a 4.65% portion of Niemczewski’s portfolio.
Last week, UBS analyst Tim Chiodo raised the price target on Visa to $305 from $295 while maintaining a Buy rating.
On TipRanks, V stock also has a Strong Buy consensus rating. This is based on 18 Buy and three Hold recommendations. The average price target of $281.74 implies 9.2% upside potential. Shares of the company have gained 25.4% year-to-date.
Concluding Thoughts
Niemczewski’s success in delivering remarkable returns confirms the effectiveness of his portfolio allocation strategy, making him a valuable reference for investors seeking well-informed investment decisions. Moreover, investors can consider leveraging TipRanks’ other valuable tools, such as Expert Center and Smart Score, for long-term investment strategies.
