The top 3 shareholders of HSBC

HSBC Holdings PLC (HSBC) is a multinational investment bank and financial services institution. It is based in the United Kingdom Its US-based subsidiary, HSBC Bank USA, is headquartered in New York. The company operates in 63 countries and regions, including Europe, Asia, North and Latin America, the Middle East and North Africa. The company has over 40 million customers and there are a total of 219,000 full-time equivalent staff working for HSBC worldwide.

Basic Takeaways

  • HSBC Holdings PLC is a multinational investment bank and financial services institution.
  • The company’s business areas include Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking.
  • Its largest shareholders include several major global investment institutions such as Dimensional Fund Advisors, Renaissance Technologies and JP Morgan Securities.

The company’s business areas include Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking. As of September 2, 2022, the company had a market cap of $123.94 billion. Among its largest shareholders are several large international investment institutions with a high level of interest in the company and its position in the banking sector. As of this writing, these are the top three shareholders of HSBC Holdings PLC based on the number of shares held.

Dimensional Fund Advisors (DFA) LP

As of June 12, 2020, Dimensional Fund Advisors (DFA) LP owned approximately 9.6 million shares of HSBC, totaling 0.24% of the outstanding stock. That stake is worth about $220.3 million.

Dimensional Fund Advisors LP is a private investment firm based in Austin, Texas. In addition to its US headquarters, the company has subsidiary offices located in Canada, the United Kingdom, Germany, the Netherlands, Australia, Singapore and Japan. DFA was founded in 1981 by David G. Booth, Rex Sinquefield and Larry G. Klotz. The firm focuses on index funds. It was one of the first companies to focus on index funds and currently offers over 100 equity and fixed income funds. As of March 31, 2020, DFA had $454 billion in assets under management. DFA’s investment philosophy is rooted in the efficient market hypothesis.

Renaissance Technologies LLC

As of June 12, 2020, Renaissance Technologies LLC owned approximately 8.98 shares of HSBC, totaling 0.22% of the outstanding stock. This stake is worth about $207.19 million.

Renaissance Technologies LLC is a hedge fund based in East Setauket, New York. The company specializes in systematic trading and uses quantitative models derived from mathematical and statistical analysis. Founded in 1982 by James Simons, an award-winning mathematician and Cold War criminal, the firm is now regarded as one of the world’s most successful hedge funds. In 1988, the firm created its most profitable portfolio, the Medallion Fund. That fund is responsible for about $10 billion of Renaissance’s roughly $10 billion in assets under management. This particular fund has also averaged an after-fee return of 38% annually since 1988. Renaissance uses a quantitative-oriented investment strategy, meaning it relies only on mathematical and statistical models

JP Morgan Securities LLC

As of June 12, 2020, JP Morgan Securities LLC owned approximately 5.83 million shares of HSBC, totaling 0.14% of the outstanding stock. That stake is worth about $134.56 million.

JP Morgan Securities is the investment banking division of the largest banking institution JP Morgan Chase & Co. It has offices in several US cities, including New York, Chicago, Los Angeles, Boston and Atlanta. The firm’s primary clients are large market companies and institutional investors and it provides debt and equity underwriting, mergers and acquisitions (M&A) and corporate restructuring, securities trading and brokerage, and transaction execution services. For individuals, the company also offers the services of financial planners and investment advisors.

The bottom line

HSBC’s position in the banking sector is of great interest to these three companies. In 2019, HSBC was the seventh largest bank in the world according to the S&P Global Market Intelligence report, which ranked banks based on their assets under management (without taking into account different accounting practices).

As of June 12, 2020, HSBC’s earnings per share (EPS) was 0.89 and its P/E ratio was 26.79. The company’s profit margin was 10.10%. The beta (five-year) was 0.51. HSBC earned net income of $13.7 billion on revenue of $86.1 billion during the 2018 financial year.

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