Vanguard Funds Have Been Among Biggest Recent Buyers Of Now-Failed Banks

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Fintel dashboards show the world’s biggest asset managers who poured into lenders

Mega-manager Vanguard Funds bought sizable stakes in both Silicon Valley Bank (NASDAQ:SIVB) and Signature Bank (NASDAQ:SBNY) in recent months, according to data compiled by Fintel.

Both banks have been closed by state regulators since Friday and taken over by the Federal Deposit Insurance Corp. (FDIC).

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As seen on Fintel’s Institutional Ownership and Shareholders dashboard, which tracks holdings based on money managers’ 13D/G or 13F forms filed with the Securities and Exchange Commission, more than 25 funds managed by The Vanguard Group bought a total of 13.19 million shares of SVB.

The biggest buys in SIVB were new positions made by two funds, Vanguard Total Stock Market Index Fund Investor Shares (MUTF:VTSMX), with 1,796,212 shares at an average share price paid of $271.24 and Vanguard Mid-Cap Index Fund Investor Shares (MUTF:VIMSX), with 1,374,357 shares at an average share price of $264.03, according to data effective on Dec. 31, 2022.


VTSMX also took a new position in New York’s Signature Bank, buying 1,916,130 shares at an average share price paid of $143.68. Sister fund, Vanguard Small-Cap Index Fund Investor Shares (MUTF:NAESX) accumulated 1,136,00 shares at an average price of $161.99 per share.

Some 1,200 SBNY institutional owners and shareholders filed Forms 13D/G or 13F at year-end 2022, with total holdings of more than 74 million shares. As for Santa Clara, CA-based Silicon Valley Bank, it had 1,445 long-only institutional owners, holding 68.53 million shares.

With more than $8 trillion in global assets under management, Malvern, PA-based Vanguard is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's (NYSE:BLK) iShares. Various iShares funds also took new positions in both now-failed banks in recent months, according to Fintel’s dashboards.

Article by Robert Lakin, Fintel

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