Financial services firms provide a range of products and financial services to assist customers in earning wealth along with managing their personal finance portfolio. There are 5 subsectors of this industry comprising banks, insurance companies, private equity firms, asset management companies, and venture capital firms. Banks are the traditional financial institutions whereby one can open his or her account as a corporate entity or an individual. Insurance companies assist customers in planning their expenses because of unpredictable events. Asset management firms invest the capital from individuals into real estate, stocks, ETFs, etc. These companies offer consistent return rates to customers. Private equity companies are investing the stake directly in the company and optimize the business activities by reducing cost and enhancing growth levels. Venture capital companies make investments in companies at the initial stage in exchange for shares and equity stake. In this article, we will share some top picks for best finance stocks according to Leon Cooperman as shared by Insider Monkey. He is the CEO and Chairman of the investment advisory company, Omega Advisors, and is the titan in the industry of hedge funds.
The list starts with Mr. Cooper Group Inc. which is the mortgage servicing firm owned by Mr. Cooperman since the Q3 of the year 2018. When September 2020 ended, he was the owner of 4.56 million shares of COOP which made him the biggest shareholder of finance stock. During the premarket trading on 6th November, the shares of COOP witnessed an increase of 3.8% after the company was recommended by Cooperman on CNBC. This was claimed by Cooperman in June that the book value of the company $24 per share whereby the trading value of shares at that time was only $13. Now, the shares of COOP are trading at more than $30 value.
Cigna Corp is the 2nd best finance stock company on this list. In September,425,000 shares of CI were owned by Leon Cooperman. Cigna shows the biggest holding of the billionaire money managers by the end of June, but around 120,000 shares of CI were sold by Cooperman in the 3rd quarter of 2020. This stock is held by Cooperman starting the Q3 of 2018. If you want to learn about other finance stocks, then go to 10 Best Finance Stocks to Buy Right Now.