Horizon Kinetics, an investment management firm, has published its third quarter 2023 investor letter, a copy of which can be downloaded here. In its third-quarter letter, the fund delved into its financial market predictions, emphasized the importance of stock exchanges as a vital asset class, explored blockchain technology and acknowledged the enormous challenge of achieving sustained success in emerging technologies. Take a moment to review the fund’s top 5 holdings to get an idea of their top investment picks for 2023.
In its Q3 2023 investor letter. Horizon Kinetics mentioned JPMorgan Chase & Co. (NYSE:JPM) and explained his insights about the company. JPMorgan Chase & Co. (NYSE:JPM) is a New York, New York-based a multinational financial services firm with $441.8 billion market cap. JPMorgan Chase & Co. (NYSE:JPM) delivered a 13.96% year-to-date return, while its trailing 12-month return has grown by 14.86%. The stock closed at $152.82 per share on November 17, 2023.
here’s what Horizon Kinetics has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2023 investor letter:
“Blockchain technology, the kind of technological development that happens every generation or so and changes commerce and society, is happening. As a potential investment, it is completely separate from the characteristics and prospects of the few cryptocurrencies with scarce value like Bitcoin. is in the initial period of its commercial development. Few educated observers would argue that it cannot be as paradigm-shifting as the Internet was. And with no less magnitude of “market capitalization” and wealth creation opportunities.
However, compared to their intuitive understanding of the early Internet, investors generally barely know what blockchain is. This includes misconceptions about risk. Perhaps because it is often associated with cryptocurrency: cryptocurrency requires a blockchain to exist, on the one hand, and many blockchains require cryptocurrency to operate. It’s hard to delve into one without hearing about the other.
Perhaps the lack of awareness is because people have yet to experience widespread adoption of blockchain services. The facts are there, but not yet obvious. Which is not to say that large corporations aren’t investing heavily and willingly. To give you an idea of how fast blockchain development is among informed participants, here’s a very narrow, highly abbreviated recent timeline of the shift in engagement with this next-gen technology, shown through the actions of the largest bank in the US:
In 2021 JPMorgan Chase, then a notoriously vocal critic of cryptocurrency, finally allowed clients to own, upon request, specific passive cryptocurrency funds (including several Grayscale trusts). However, the bank’s private advisers were not allowed to recommend such investments. Even at that time, however, JPMorgan was already an early developer of internal blockchain technology. A blockchain-based data system can dramatically reduce a bank’s huge back-office operating costs while even more dramatically improving transaction and record speeds and error rates. In November 2022, JP Morgan Wallet received approval from the US Patent and Trademark Office for an application it had filed more than two years ago. This wallet enables electronic cryptocurrency transfers, cryptocurrency-based payment processing, virtual checking accounts and payment settlement.”
Our calculations show that JPMorgan Chase & Co. (NYSE:JPM) ranks 20th on our list of The 30 most popular stocks among hedge funds. We also mentioned JPMorgan Chase & Co. (NYSE: JPM) in another article. JPMorgan Chase & Co. (NYSE: JPM) participates 106 hedge fund portfolios at the end of the second quarter of 2023, compared to 112 funds in the previous quarter. JPMorgan Chase & Co. (NYSE:JPM) delivered a 2.23% return in the last 3 months. You can find other investor letters from hedge funds and prominent investors on our Hedge Fund Investor Letters Page Q3 2023.
Disclosure: None. This article was originally published on Insider Monkey.