Looking to invest in financial companies outside of the United States but unsure where to start? One way is to look at the investing activities of institutional money managers, like hedge funds and investment banks.
Institutions often invest hundreds of thousands of dollars or more at one time. Regular investors pay attention to what institutional investors do because if they are willing to handle such large amounts of money, it is easy enough to assume that they know what they are doing -- or at the very least know more than the average investor. This is why these investors are also sometimes referred to as "smart money."
Business section: Investing ideas
Foreign stocks typically offer unique investing opportunities because you are not only investing in a company, but an economy. If the country sees great strides in growth, it's likely their industries will share the benefits.
We ran a screen on foreign financial stocks for names seeing the most significant net buying from institutional investors in the current quarter, indicating they believe there is more upside to these names. Do you agree with their optimism? (Click here to access free, interactive tools to analyze these ideas.)
1. Aspen Insurance Holdings
3. Flagstone Reinsurance Holdings
4. Maiden Holdings
5. Validus Holdings, Ltd.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Institutional data sourced from Fidelity. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.