We recently published a list of Israel Englander’s Stock Portfolio: Top 10 Stocks to Invest in. In this article, we are going to take a look at where Wells Fargo & Company (NYSE:WFC) stands against other stocks to invest in from Israel Englander’s portfolio.

Millennium Management is a globally recognized investment firm specializing in multi-strategy hedge fund offerings. Founded in 1989, the firm has established itself as one of the largest alternative asset management firms. With headquarters in New York, Millennium Management has expanded its operations across North America, Europe, and Asia, with 18 primary offices in financial hubs such as London, Dubai, Singapore, and Tokyo. The firm employs a platform-based investment approach, consisting of approximately 330 investment teams operating under a decentralized model. These teams deploy diverse strategies across various asset classes, including equities, fixed income, commodities, and derivatives. Millennium’s core strategies encompass fundamental equity research, equity arbitrage, macroeconomic-driven fixed-income investments, and commodity-based trades. By leveraging a data-driven and diversified approach, the firm seeks to generate consistent, high-quality returns for its investors while effectively managing risk across global markets.

Millennium was co-founded by Israel A. Englander and Ronald Shear, both of whom had extensive experience in the American Stock Exchange (AMEX). The firm initially launched with $35 million in capital, with Englander contributing $5 million and securing additional investment from Canadian financiers, the Belzberg brothers. However, the firm faced early struggles, leading to Shear’s departure just six months after its inception. Despite these challenges, Millennium Management evolved into a powerhouse in the hedge fund industry, consistently ranking among the top-performing firms. Over the years, Millennium has adopted an institutionalized structure, attracting seasoned executives such as Bobby Jain, who served as co-CIO alongside Englander until his departure in 2023. By implementing a disciplined risk management framework and continuously refining its investment strategies, Millennium has remained at the forefront of alternative asset management.

Israel Englander, the driving force behind Millennium, has built a reputation as one of the most successful hedge fund managers in modern finance. A graduate of New York University, Englander pursued an MBA before leaving early to trade at AMEX, where he gained valuable experience in market-making and derivatives trading. His expertise and strategic vision enabled Millennium to grow rapidly, managing approximately $13 billion in assets by 2011. In recent years, Englander has explored opportunities to sell a minority stake in the firm, signaling a shift towards institutional ownership. His approach to hedge fund management prioritizes capital allocation to specialized teams rather than making direct investment decisions himself. This model has allowed Millennium to maintain a highly competitive edge, attracting top talent and fostering a dynamic investment environment.

Millennium’s outstanding performance has positioned it as one of the most successful hedge funds globally. As of Q4 2024, the firm reported $204.64 billion in managed 13F securities, with its top ten holdings comprising 15.5% of its portfolio. Notably, Millennium has consistently ranked among the highest-grossing hedge funds, posting the fourth-largest net gains of any fund since its inception. Its commitment to risk-adjusted returns, diversification, and strategic innovation has earned it a strong reputation among institutional investors. With a proven track record, an expansive global presence, and a disciplined investment approach, Millennium Management continues to be a dominant force in the hedge fund industry.

Our Methodology

The stocks discussed below were picked from Millennium Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1,008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A team of bankers in suits, discussing the success of the company's banking products.

Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders as of Q4: 96

Millennium Management’s Equity Stake: $940.64 Million 

Wells Fargo & Company (NYSE:WFC), founded by Henry Wells and William Fargo in 1852 and headquartered in San Francisco, California, is a major multinational financial services firm with operations in 35 countries and a customer base exceeding 70 million. Recognized as one of the Big Four Banks in the United States, it is classified as a systemically important financial institution by the Financial Stability Board, underscoring its significant role in the global financial system.

Wells Fargo & Company (NYSE:WFC) reported strong Q4 2024 earnings, surpassing expectations and driving a 5% stock increase. Net income rose 47% year-over-year to $5.1 billion, or $1.43 per share, while revenue reached $20.4 billion. Growth was fueled by a 59% surge in investment banking fees, driven by increased deal-making activity as companies took advantage of improved economic confidence to raise capital and pursue mergers and acquisitions. The bank’s home loan business saw mixed results as mortgage rates remained high. Wells Fargo’s stock performance has been volatile over the past four years, but 2025 looks promising as the bank forecasts net interest income growth of 1% to 3%, supported by stronger loan demand and lower deposit costs. The Trump administration’s expected deregulation policies could further benefit the financial sector by easing banking oversight, reducing compliance costs, and encouraging lending and deal-making activities.

In the fourth quarter of 2024, Millennium Management significantly boosted its investment in Wells Fargo & Company (NYSE:WFC), increasing its holdings to 13.4 million shares—a 42% rise from over 9.4 million shares held in the previous quarter. This expansion brought the fund’s total stake in the company to an estimated $940.64 million. Additionally, data from Insider Monkey revealed that by the end of Q4 2024, 96 hedge funds had positions in Wells Fargo, collectively holding nearly $6.64 billion in shares. This marked a significant increase from Q3 when only 72 hedge funds had investments in the company.

Wells Fargo & Company (NYSE:WFC)’s strong financial performance, highlighted by a 47% increase in net income and a surge in investment banking fees, reflects its resilience and ability to capitalize on improving economic conditions. Additionally, growing institutional confidence, as seen in Millennium Management’s 42% increase in holdings and the rising number of hedge funds investing in the company, reinforces its potential as a solid long-term investment.

Overall, WFC ranks 6th on our list of stocks to invest in from Israel Englander’s portfolio. While we acknowledge the potential for WFC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WFC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.