HSBC Holdings PLC (HSBC) is a multinational investment bank and institution providing financial services. It is based in the United Kingdom Its US-based subsidiary HSBC Bank USA has its operational headquarters in New York. The company operates in 63 countries and territories, including Europe, Asia, North and Latin America, the Middle East and North Africa. The company has over 40 million customers and a total of 219,000 full-time employees working for HSBC worldwide.
- HSBC Holdings PLC is a multinational investment bank and financial services institution.
- The company’s business lines include retail banking and wealth management, commercial banking, global banking and markets, and global private banking.
- Its largest shareholders include several major global investment institutions such as Dimensional Fund Advisors, Renaissance Technologies and JP Morgan Securities.
The company’s business lines include retail banking and wealth management, commercial banking, global banking and markets, and global private banking. As of September 2, 2022, the company had a market capitalization of $123.94 billion. Its largest shareholders include several major global investment institutions with a high interest in the company and its position in the banking sector. At the time of writing, these are the three largest shareholders of HSBC Holdings PLC by number of shares owned.
Dimension Fund Advisors (DFA) LP
As of June 12, 2020, Dimensional Fund Advisors (DFA) LP held approximately 9.6 million shares of HSBC, totaling 0.24% of outstanding shares. The stake is worth approximately $220.3 million.
Dimensional Fund Advisors LP is a private investment firm based in Austin, Texas. In addition to its US headquarters, the company has offices in Canada, the UK, Germany, the Netherlands, Australia, Singapore and Japan. DFA was founded in 1981 by David G. Booth, Rex Sinquefield and Larry G. Klotz. The firm focuses on index funds; was one of the first companies to focus on index funds and currently offers more than 100 equity and fixed income mutual funds. As of March 31, 2020, DFA had $454 billion managed property. DFA’s investment philosophy is rooted in the efficient market hypothesis.
Renaissance Technologies LLC
As of June 12, 2020, Renaissance Technologies LLC held approximately 8.98 shares of HSBC, a total of 0.22% of the shares outstanding. This stake is worth approximately $207.19 million.
Renaissance Technologies LLC is a hedge fund based in East Setauket, New York. The firm specializes in systematic trading and uses quantitative models derived from mathematical and statistical analyses. Founded in 1982 by James Simons, an award-winning Cold War programmer and mathematician, the company is now considered one of the most successful hedge funds in the world. In 1988, the firm established its most profitable portfolio, the Medallion Fund. This fund is responsible for approximately $10 billion of Renaissance’s approximately $10 billion in assets under management. This particular fund has also produced an average net return of 38% per annum since 1988. Renaissance uses a quant-oriented investment strategy, meaning it relies only on mathematical and statistical modeling.
JP Morgan Securities LLC
As of June 12, 2020, JP Morgan Securities LLC held approximately 5.83 million HSBC shares, totaling 0.14% of outstanding shares. The stake is worth approximately $134.56 million.
JP Morgan Securities is the investment banking division of the larger banking institution JP Morgan Chase & Co. It has offices in many US cities, including New York, Chicago, Los Angeles, Boston and Atlanta. The firm’s main clients are large market companies and institutional investors and it provides services in debt and equity underwriting, mergers and acquisitions (M&A) and corporate restructuring, securities trading and trade brokerage and deal execution. For individuals, the company also offers the services of financial planners and investment advisors.
The position of HSBC in the banking sector is very interesting for these three companies. In 2019, HSBC was the seventh largest bank in the world according to the S&P Global Market Intelligence report, which ranked banks based on their assets under management (disregarding different accounting practices).
As of June 12, 2020, HSBC’s earnings per share (EPS) were 0.89 and its P/E ratio was 26.79. The company’s profit margin was 10.10%. Beta (five-year) was 0.51. HSBC earned net income of $13.7 billion on revenue of $86.1 billion during the 2018 fiscal year.