Rotation Out of Large Cap Banks Accelerates
BRIARCLIFF MANOR, NY / ACCESSWIRE / August 14, 2024 / Whalen Global Advisors ("WGA") has released the latest constituents for the WGA Bank Top Indices (the "Indices"). The WGA Bank Top Indices track the best performing publicly traded banks in the US. WGA employs a unique pure constituent weighting system in testing the banks in the Indices to ensure that the highest scoring banks have the greatest impact on the Indices regardless of size.
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The constituents of the Indices and the individual stock weightings are available to subscribers to Premium Service of The Institutional Risk Analyst, the publication of WGA that follows developments in banking, mortgage finance and the nonbank finance sectors. Each quarter, WGA ranks the top banks in the US by financial and market performance for our subscribers.
In Q3 2024, the top 25 banks had average scores in the 370 range out of a possible score of 535, WGA reports, but the bottom 25 banks in the test group had average scores below 175, a significant deterioration from last quarter. A number of large cap banks fell out of the top 10 after a strong showing in the Q2 2024 index test process, WGA reports.
"We saw significant institutional selling in large cap banks starting in May of this year," notes WGA Chairman Christopher Whalen. "Since then, our test results reveal a lot of movement in that top 25 group based upon financial performance and market returns. A number of large cap names have dropped significantly since the start of the year due to investor fear of a recession."
WGA notes that the score for one top moneycenter bank fell from 67th place in the five-factor WGA test in Q2 2024 to 105th in Q3 2024. A leading mid-cap regional lender which ranked 6th in Q2 2023 fell to 18th in Q3 2024. One of the largest consumer lenders and white label credit card issuers ranked 3rd in Q2 2024 and 11th in Q3 2024. And the WGA score for one of the largest US universal banks ranked 2nd in Q2 2024, but fell to 4th in Q3 2024.
"Our WGA Bank Indices clearly show the superior returns available to investors by focusing on the banks with superior market and operating performance characteristics," Whalen adds. "While large cap names led the way in 2023 and Q1 of 2024, now the smaller banks are clearly dominating the test results." Investors interested in learning more should contact WGA.
The constituents of the WGA Bank Indices are self-selected based upon WGA's proprietary measures of financial performance and market returns. Each bank essentially votes for itself in a census based upon the institution's market and financial performance. WGA works with our partners at Thematic to produce the Indices.
About Whalen Global Advisors LLC
Whalen Global Advisors LLC is a New York-based consulting, risk analytics and publishing company that focuses on financial institutions and global markets. WGA publishes the WGA Bank Top Indices, The Institutional Risk Analyst (ISSN 2692-1812), and regular commentary on the capital markets, industry reports and company profiles. For additional information, please contact us at: info@rcwhalen.com
Contact Information
Chris Whalen
Chairman
chris@rcwhalen.com
914-645-5304
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SOURCE: WGA LLC
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