Evercore says mutual funds cut bank stock holdings in second quarter

Investing.com - Mutual funds reduced their overweight positions in large-cap bank stocks during the second quarter of 2026, according to data compiled by Evercore based on fund filings as of June 30.

The top 25 mutual funds, representing approximately $3.0 trillion in assets under management, held overweight positions in only two of the eight largest-cap bank stocks in Evercore's coverage as of June 30, down from three in the first quarter. The funds increased holdings in KKR (NYSE: KKR), Morgan Stanley (NYSE: MS), and Truist Financial (NYSE: TFC) while decreasing positions in State Street (NYSE: STT), Citigroup (NYSE: C), and Wells Fargo (NYSE: WFC).

The top 25 mutual funds held overweight positions in four alternative asset managers including Ares Management (NYSE: ARES), KKR, Apollo Global Management (NYSE: APO), and Blue Owl Capital (NYSE: OWL). The number of funds owning alternative asset managers rose to 18 in the second quarter from 16 in the first quarter.

Only 10 of the top 25 mutual funds own Blackstone (NYSE: BX), while KKR, Carlyle Group (NASDAQ: CG), and Apollo have the highest position weightings among mutual funds with alternative asset manager exposure. Both mutual funds and hedge funds, representing approximately $1.0 trillion in assets under management, were marginally underweight Evercore's financial coverage in the second quarter.

Trust banks rose 27% during the second quarter, leading Evercore's coverage, which closed up 11% on average. The sector benefited from stronger period-of-life performance and improved full-year outlooks at second-quarter earnings.

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