Bank Earnings: Mixed Results and Market Reaction

Bank of America's recent market cap gain of $14 billion may be appreciated by institutional investors, who own a majority stake of 59% in the company. However, investors should be wary of relying on institutional validation as they too can get it wrong. Hedge funds do not have a meaningful investment in Bank of America, while Berkshire Hathaway Inc. is the largest shareholder with 13% of shares outstanding. Insider ownership is under 1%, but board members collectively own $454 million worth of shares. The general public owns a 28% stake, while public companies own 13%.