Today, one company is pushing down the entire banking sector. Silicon Valley Bank (NASDAQ:SIVB), or SVB Financial Group, fell more than 45% today in pre-market trading. This brings losses for SIVB stock to more than 62% for the week.
Two days ago, the company announced plans for a new public offering. Additionally, the bank admitted to having to offload a portfolio of U.S. Treasuries and $1.75 billion worth of shares at a loss. News of this development sent shockwaves of panic through the financial community as investors rushed to sell off their shares.
But as fears of bank runs mount, a trading halt has been placed on SIVB stock, leading to even more uncertainty. As CNN reports:
“SVB, a relatively unknown bank outside of Silicon Valley, lends to higher-risk tech startups that have recently been hurt by higher interest rates and dwindling venture capital. The bank partners with nearly half of all venture-backed tech and health care companies in the United States, many of which pulled deposits out of the bank as rising interest rates raised concern that the bank may not be able to get all its customers’ money back if they pulled their deposits en masse.”
Hedge fund founder Bill Ackman has compared the unfolding scenario to the 2008 collapse of investment bank Bear Stearns. He tweeted that a bailout for Silicon Valley Bank could be necessary, but that the government should design it to protect the company’s depositors.
As bank stocks continue to trend downward, investors are waiting anxiously for news of what will happen regarding SIVB stock. This includes the hedge funds and other financial institutions that have staked large-scale bets on the troubled company.
5 Investors Still Betting Big on SIVB Stock
According to data from Whale Wisdom, it hasn’t been a great year for Silicon Valley Bank, even before these troubles started. Since Q4 2022, the number of funds holding SIVB stock has fallen 4%, from 657 to 629. While the number of both new and increased positions are up, many institutional investors are likely wishing they hadn’t made these bets. The company’s put/call ratio has spiked 110% to 1.68, indicating that bearish sentiment toward the stock is steadily increasing. With the troubles that currently threaten to pull Silicon Valley Bank under, it’s not hard to see why.
Here are the top five institutional investors who still hold large SIVB stock positions as of Q4 2022.
- Vanguard Group: 6,657,712 shares. This mutual fund giant recently increased its holdings by 156,073 shares.
- BlackRock (NYSE:BLK): 4,764,351 shares. This investment bank added 272,933 of SIVB shares during Q4.
- State Street Corp (NYSE:STT): 3,082,695 shares. This financial services institution made a small purchase in Q4, adding 4,918 shares.
- Alecta Pensionsförsäkring, ömsesidigt: 2,633,100 shares. This Swedish pension provider increased its SIVB stock holdings by 225,000 during Q4.
- JPMorgan (NYSE:JPM): 2,513,307 shares. This BlackRock peer decreased its SIVB holdings in Q4 by 4,406.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.