20 Biggest Holding Companies in USA
In this piece, we will take a look at the 20 biggest holding companies in USA. For more companies such as these, head on over to 5 Biggest Holding Companies in USA.
A holding company — usually a corporation or LLC — is created for the primary business of holding a controlling interest in the securities of other companies. Oftentimes known as parent companies, holding companies are quite common around the world, especially when it comes to large firms operating in lucrative industries such as finance and consumer goods.
Somewhat similar to hedge funds, mutual funds, and investors in that they can hold an interest in certain firms, what sets holding companies apart is that they hold a controlling stake within a company that provides them with the ability to decide management and set long-term strategic goals for the target firm. This, in turn, allows a holding company to be entitled to the profits of its subsidiaries.
There are certain advantages that come with a holding company, including liability protection. Since they are relatively easy to create or change, holding companies can take advantage of geographical differences in taxation regimes. If a location has high tax taxes, the holding company can simply relocate to a more business-friendly environment while continuing operations in the original area of operation.
While the picture seems rosy for holding companies, the same isn't guaranteed for their subsidiaries. As an example, a subsidiary cannot raise capital by issuing new shares, and it is also at risk if the parent runs into legal troubles. Additionally, if a subsidiary company goes bankrupt, the holding company may experience a capital loss and a decline in net worth. That said, the bankrupt company’s creditors cannot legally pursue the holding company for remuneration.
With these details in mind, it is time to take a look at some of the biggest holding companies in the USA. While most holding companies operate within the finance industry, there are others as well. Renowned names include JPMorgan Chase & Co. (NYSE:JPM), Johnson & Johnson (NYSE:JNJ), and Berkshire Hathaway Inc. (NYSE:BRK.A).
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Our Methodology
We studied several different industries to see which major players are structured as holding companies. These are then ranked through their market capitalization.
Biggest Holding Companies in USA
20. M&T Bank Corporation (NYSE:MTB)
Market Capitalization as of March 15: $19.31 billion
M&T Bank Corporation (NYSE:MTB) is an American bank holding company headquartered in Buffalo, New York. Previously known as the First Empire State Corporation, the company operates through Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking segments.
According to Insider Monkey’s third quarter database, 44 hedge funds were long M&T Bank Corporation (NYSE:MTB), compared to 39 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 1.48 million shares worth $261.8 million.
Along with Johnson & Johnson (NYSE:JNJ), JPMorgan Chase & Co. (NYSE:JPM), and Berkshire Hathaway Inc. (NYSE:BRK.A), M&T Bank Corporation (NYSE:MTB) is one of the largest holding companies in the United States.
19. The Bank of New York Mellon Corporation (NYSE:BK)
Market Capitalization as of March 15: $34.19 billion
The Bank of New York Mellon Corporation (NYSE:BK), commonly known as BNY Mellon, is an American investment banking services holding company headquartered in New York City. Formed from the merger of The Bank of New York and the Mellon Financial Corporation in 2007, the company provides lending, analytics, leasing, wealth management, insurance, accounting, and other services.
In the fourth quarter of 2022, the company reported revenue of $3.9 billion, which fell by 3% from the same period last year. However, its net interest revenue grew by 56% from the prior-year period.
At the end of Q4 2022, 55 hedge funds tracked by Insider Monkey reported owning stakes in The Bank of New York Mellon Corporation (NYSE:BK), up from 50 in the previous quarter. The collective value of these stakes is over $3.2 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4.
18. Capital One Financial Corporation (NYSE:COF)
Market Capitalization as of March 15: $34.47 billion
Capital One Financial Corporation (NYSE:COF) is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States. With over 100 million clients, Capital One Financial Corporation (NYSE:COF) is a major participant in the credit card industry.
On January 24, Capital One Financial Corporation (NYSE:COF) posted earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $2.82 and generated a revenue of $9.04 billion, up 11.36% year over year.
Capital One Financial Corporation (NYSE:COF) was a part of 55 hedge funds’ portfolios at the end of Q4 2022. The total stakes of these hedge funds amounted to $2.94 billion. As of December 31, Pzena Investment Management is the largest shareholder in the company and has a position worth $555.18 million.
17. American International Group, Inc. (NYSE:AIG)
Market Capitalization as of March 15: $34.9 billion
American International Group, Inc. (NYSE:AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. The company provides a range of life insurance, property and casualty insurance, retirement products, and other financial services to individuals and businesses.
The company boasted a strong client retention of 88% alongside new business growth and rate increases across its portfolio in 2022. Additionally, American International Group, Inc. (NYSE:AIG)'s Global Specialty division generated an impressive accident year combined ratio, excluding CATs, of 80%.
According to Insider Monkey’s data, 46 hedge funds were long American International Group, Inc. (NYSE:AIG) at the end of the fourth quarter of 2022, compared to 48 funds in the prior quarter. Harris Associates is the largest stakeholder of the company, with 16.13 million shares valued at over $1 billion.
16. Truist Financial Corporation (NYSE:TFC)
Market Capitalization as of March 15: $43.68 billion
Truist Financial Corporation (NYSE:TFC) is an American bank holding company headquartered in Charlotte, North Carolina. Formed in December 2019 as the result of the merger of BB&T and SunTrust Banks, the company offers accounts, asset management, loans, and other financial products.
At the end of the fourth quarter of 2022, 44 hedge funds had stakes in Truist Financial Corporation (NYSE:TFC). The total value of these stakes was about $824 million. The biggest hedge fund stakeholder of Truist Financial Corporation (NYSE:TFC) was Ric Dillon’s Diamond Hill Capital which had a $563 million stake in the company.
15. The PNC Financial Services Group, Inc. (NYSE:PNC)
Market Capitalization as of March 15: $49.62 billion
The PNC Financial Services Group, Inc. (NYSE:PNC) is an American bank holding company and financial services corporation based in Pittsburgh, Pennsylvania. Its banking subsidiary, PNC Bank, operates in 27 states and the District of Columbia, with 2,629 branches and 9,523 ATMs.
In the fourth quarter of 2022, The PNC Financial Services Group, Inc. (NYSE:PNC) reported revenue of $5.7 billion, which showed a 12.3% growth from the prior-year period. The holding company returned nearly $600 million to shareholders in dividends for the quarter.
49 out of the 943 hedge funds part of Insider Monkey’s Q4 2022 poll had invested in The PNC Financial Services Group, Inc. (NYSE:PNC).
14. Citigroup Inc. (NYSE:C)
Market Capitalization as of March 15: $83.91 billion
Citigroup Inc. (NYSE:C), or Citi, is an American multinational investment bank and financial holding corporation headquartered in New York City that was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998. The bank offers mortgages, lending, equity research, private banking, cash management, and other services.
This past year, Citigroup Inc. (NYSE:C) returned around $7.3 billion in capital to shareholders in the form of common dividends and share repurchases. Additionally, the bank’s markets revenue rose 7% year-over-year, on account of a fixed income growth of 13% on a year-over-year basis.
13. The Charles Schwab Corporation (NYSE:SCHW)
Market Capitalization as of March 15: $98.12 billion
The Charles Schwab Corporation (NYSE:SCHW) is an American multinational financial services and holding company that offers banking, commercial banking, investing and related services including consulting, and wealth management advisory services to both retail and institutional clients.
In an interview with Reuters on March 14, Walt Bettinger, CEO of The Charles Schwab Corporation (NYSE:SCHW), stated that the firm didn't need additional liquidity and that it had more than $100 billion of cash flow stemming from bank balances in addition to net new assets that are brought to the platform by new and existing clients.
12. The Goldman Sachs Group, Inc. (NYSE:GS)
Market Capitalization as of March 15: $104.33 billion
The Goldman Sachs Group, Inc. (NYSE:GS) is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals.
11. Wells Fargo & Company (NYSE:WFC)
Market Capitalization as of March 15: $136.84 billion
Wells Fargo & Company (NYSE:WFC) is an American multinational financial holding company with corporate headquarters in San Francisco, California; operational headquarters in Manhattan; and managerial offices throughout the United States and internationally. It provides consumer banking services, commercial banking products, investment banking, wealth management, and other financial services.
10. Morgan Stanley (NYSE:MS)
Market Capitalization as of March 15: $141.20 billion
Morgan Stanley (NYSE:MS) is an American multinational investment management and financial services holding company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 41 countries, the firm's clients include corporations, governments, institutions, and individuals.
While reputationally known for investment banking, a bulk of Morgan Stanley (NYSE:MS)'s growth is attributed to its Wealth Management and Investment Management divisions- as a result of recent acquisitions- in which the company has seen pre-tax profits grow from $500 million to $6.6 billion over the past 13 years.
55 of the 943 hedge funds part of our database had invested in Morgan Stanley (NYSE:MS) during Q4 2022. The bank’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management which owns 18.9 million shares that are worth $1.6 billion.
9. Comcast Corporation (NASDAQ:CMCSA)
Market Capitalization as of March 15: $151.44 billion
Comcast Corporation (NASDAQ:CMCSA), headquartered in Philadelphia, is one of the largest American multinational telecommunications conglomerates and holding companies. Its broadband, wireless, and video services include Xfinity, Comcast Business and Sky Brands, and its media empire includes Universal, Sky Studios, NBC, Telemundo, and Peacock streaming.
8. The Walt Disney Company (NYSE:DIS)
Market Capitalization as of March 15: $171.87 billion
The Walt Disney Company (NYSE:DIS), commonly known as Disney, is an American multinational, mass media and entertainment conglomerate and holding firm that is headquartered at the Walt Disney Studios complex in Burbank, California. Through its many subsidiaries, Disney has an expansive entertainment empire, which includes the ownership of cable television networks such as the Disney Channel and ESPN, publishing, merchandising, music, and theater divisions; and direct-to-consumer streaming services such as Disney+.
7. Bank of America Corporation (NYSE:BAC)
Market Capitalization as of March 15: $217.10 billion
The Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina, with investment banking and auxiliary headquarters in Manhattan. Considered among the "too big to fail” banks, Bank of America Corporation (NYSE:BAC) has seen an inflow of more than $15 billion worth of deposits amid fears of a meltdown in the US banking sector following the collapse of SVB Financial.
At the end of December 2022, 100 elite funds in Insider Monkey’s database were long Bank of America Corporation (NYSE:BAC), up from 97 in the previous quarter. The stakes owned by these hedge funds have a consolidated value of $37.5 billion.
6. PepsiCo, Inc. (NASDAQ:PEP)
Market Capitalization as of March 15: $247.21 billion
Pepsi is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. The holding company's business encompasses all aspects of the food and beverage market, including the manufacturing, distribution, and marketing of its products. Formed in 1965 after the merger of the Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo, Inc. (NASDAQ:PEP) has since expanded from its namesake product Pepsi Cola to an immensely diversified range of food and beverage brands. The largest and most recent acquisition was Pioneer Foods in 2020 for $1.7 billion
PepsiCo, Inc. (NASDAQ:PEP) is popular among hedge funds, as 70 funds in Insider Monkey’s database owned stakes in the company in Q4 2022. These stakes are valued at over $4.42 billion collectively.
PepsiCo, Inc. (NASDAQ:PEP) joins JPMorgan Chase & Co. (NYSE:JPM), Johnson & Johnson (NYSE:JNJ), and Berkshire Hathaway Inc. (NYSE:BRK-B) in our list of the largest holding companies in USA.
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Disclosure: None. 20 Biggest Holding Companies in USA is originally published at Insider Monkey.