Written by Rebecca Lipman

Looking to invest in financial companies outside of the United States but unsure where to start? One way is to look at the investing activities of institutional money managers, like hedge funds and investment banks.

Institutions often invest hundreds of thousands of dollars or more at one time. Regular investors pay attention to what institutional investors do because if they are willing to handle such large amounts of money it is easy enough to assume that they know what they are doing - or at the very least know more than the average investor. This is why these investors are also sometimes referred to as "smart money."

Interactive Chart: Use the Compar-O-Matic to compare average analyst ratings for the stocks mentioned below:

Business Section: Investing Ideas

Foreign stocks typically offer unique investing opportunities because you are not only investing in a company, but an economy. If the country sees great strides in growth, it's likely their industries will share the benefits.

We ran a screen on foreign financial stocks for names seeing the most significant net buying from institutional investors in the current quarter, indicating they believe there is more upside to these names. Do you agree with their optimism? (Click here to access free, interactive tools to analyze these ideas.)

1. Aspen Insurance Holdings Ltd. (NYSE:AHL): Provides insurance and reinsurance products and services worldwide. Bermuda. Net institutional purchases in the current quarter at 5.9M shares, which represents about 8.93% of the company's float of 66.07M shares

2. Credicorp Ltd. (NYSE:BAP): Provides a range of financial products and services in Peru, Bolivia, and Panama. Peru. Net institutional purchases in the current quarter at 3.0M shares, which represents about 5.91% of the company's float of 50.76M shares

3. Flagstone Reinsurance Holdings SA (NYSE:FSR): Operates as a reinsurance and insurance company worldwide. Luxembourg. Net institutional purchases in the current quarter at 2.3M shares, which represents about 4.98% of the company's float of 46.18M shares

4. Maiden Holdings, Ltd. (Nasdaq:MHLD): Provides non-catastrophe inland marine and property coverage reinsurance solutions to the regional and specialty insurers in the United States and Europe. Bermuda. Net institutional purchases in the current quarter at 2.8M shares, which represents about 5.49% of the company's float of 51.04M shares

5. Validus Holdings, Ltd. (NYSE:VR): Provides reinsurance and insurance coverage in the property, marine, and specialty lines markets worldwide. Bermuda. Net institutional purchases in the current quarter at 5.6M shares, which represents about 6.13% of the company's float of 91.32M shares.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Disclosure: Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Institutional data sourced from Fidelity.

Related Articles
  1. Products and Investments

    There's a Reason They're Called Junk Bonds

    The closing of Third Avenue Managemet's Focused Credit Fund is a warning to investors and advisors. Beware the junk.
  2. Stock Analysis

    Tribune Media: An Activist Investment Analysis (TRCO)

    Learn more about the breakup of Tribune Company, once a powerful newspaper and broadcasting giant, and the role of activist investor Cliff Robbins.
  3. Stock Analysis

    Air Products and Chemicals: An Activist Investment Analysis (APD)

    Learn about the productive, and uncommonly friendly, activist investment made by Bill Ackman into Air Products and Chemicals.
  4. Stock Analysis

    Analyzing Altria's Return on Equity (ROE) (MO)

    Learn about Altria Group's return on equity (ROE) and analyze net profit margin, asset turnover and financial leverage to determine what is causing its high ROE.
  5. Investing News

    Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow his lead?
  6. Stock Analysis

    Analyzing Google's Return on Equity (ROE) (GOOGL)

    Learn about Alphabet's return on equity. How has its ROE changed over time, how does it compare to its peers and what factors are driving ROE for the company?
  7. Investing News

    Is Buffett's Bet on Oil Right for You? (XOM, PSX)

    Oil stocks are getting trounced, but Warren Buffett still likes one of them. Should you follow the leader?
  8. Investing

    3 Things About International Investing and Currency

    As world monetary policy continues to diverge rocking bottom on interest rates while the Fed raises them, expect currencies to continue their bumpy ride.
  9. Stock Analysis

    Jana Partners: An Activist Investor Analysis

    Learn about Jana Partners, a hedge fund founded by Barry Rosenstein. Read about new positions in ConAgra and Qualcomm the fund took in 2015.
  10. Investing News

    Chipotle Served with Criminal Probe

    Chipotle's beat muted expectations and got a clear bill from the CDC, but it now appears that an investigation into its E.coli breakout has expanded.
  1. What is securitization?

    Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming ... Read Full Answer >>
  2. Can hedge funds trade penny stocks?

    Hedge funds can trade penny stocks. In fact, hedge funds can trade in just about any type of security, including medium- ... Read Full Answer >>
  3. Are hedge funds regulated by FINRA?

    Alternative investment vehicles such as hedge funds offer investors a wider range of possibilities due to certain exceptions ... Read Full Answer >>
  4. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  5. Can hedge fund returns be replicated?

    You can replicate hedge fund returns to a degree but not perfectly. Most replication strategies underperform hedge funds ... Read Full Answer >>
  6. Can foreign investors invest in US hedge funds?

    U.S. hedge funds are open to accredited investors. When they distribute profits to investors, those proceeds are taxed at ... Read Full Answer >>
Trading Center