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The investment banks which barely survived the financial crises are back on their feet. In 2010, the total fees charged by the industry increased by almost 6% to $49.1 billion. JPMorgan Chase (NYSE:JPM) was the most profitable company in stock equities and bond underwriting. Last year, the company earned $4.14 billion in advisory fees. This year, earnings are expected to grow by 17.44%, and long-term consensus earnings growth is 7.5%. With $ 1.492 trillion in current assets, JPMorgan is one of the largest institutional investors in the stock market. The investment titan offers 118 mutual funds managed by "professional" money managers. Approximately half of these funds invest in equity markets. JPMorgan's largest holdings are as below:

Stock /ETF

Value ($ million)

% of Portfolio

Change in shares

YTD Return

Spdr S&P 500 (NYSEARCA:SPY)

$7,761

3.83%

-4.86%

4.05%

Yanzhou Coal (NYSE:YZC)

$4,994

2.47%

59822%

-0.42%

Apple (NASDAQ:AAPL)

$4,477

2.21%

42.39%

9.12%

Exxon (NYSE:XOM)

$4,338

2.14%

16.92%

12.90%

Microsoft (NASDAQ:MSFT)

$3,943

1.95%

17.83%

-7.46%

Bank of America (NYSE:BAC)

$2,593

1.28%

24.04%

7.88%

Citigroup (NYSE:C)

$2,495

1.23%

17.88%

-3.38%

Chevron (NYSE:CVX)

$2,248

1.11%

11.31%

10.33%

Vanguard E.M. ETF (NYSEARCA:VWO)

$2,200

1.09%

47.41%

-3.70%

Procter & Gamble (NYSE:PG)

$2,074

1.02%

10.91%

-3.71%

Wells Fargo (NYSE:WFC)

$2,034

1.00%

5.34%

4.65%

Ishares Russell 2000 (NYSEARCA:IWM)

$1,915

0.95%

-9.57%

2.48%

IBM (NYSE:IBM)

$1,856

0.92%

-10.00%

11.12%

Merck & Co. (NYSE:MRK)

$1,828

0.90%

-1.79%

-9.18%

Cisco (NASDAQ:CSCO)

$1,768

0.87%

17.94%

-11.27%

Pfizer (NYSE:PFE)

$1,732

0.85%

6.24%

12.35%

Vale S.A. (NYSE:VALE)

$1,606

0.79%

0.66%

-6.46%

Abbott Laboratories (NYSE:ABT)

$1,593

0.79%

15.73%

2.09%

United Technologies (NYSE:UTX)

$1,593

0.79%

10.40%

3.77%

Freeport-Mcmoran (NYSE:FCX)

$1,583

0.78%

-14.17%

-17.26%

Goldman Sachs (NYSE:GS)

$1,487

0.73%

-5.56%

-4.24%

Philip Morris (NYSE:PM)

$1,456

0.72%

-34.28%

8.97%

Time Warner (NYSE:TWX)

$1,444

0.71%

8.28%

13.64%

El Dupont (NYSE:DD)

$1,393

0.69%

7.09%

6.87%

Occidental Petroleum (NYSE:OXY)

$1,373

0.68%

-2.90%

1.12%

General Electric (NYSE:GE)

$1,357

0.67%

6.53%

12.11%

Coca-Cola Company (NYSE:KO)

$1,337

0.66%

-0.09%

-1.46%

Spdr Gold (NYSEARCA:GLD)

$1,279

0.63%

-10.21%

-0.36%

Oracle (NYSE:ORCL)

$1,247

0.62%

38.80%

2.11%

Verizon (NYSE:VZ)

$1,244

0.61%

8.97%

1.50%

AT&T (NYSE:T)

$1,244

0.61%

8.84%

-1.73%

Google (NASDAQ:GOOG)

$1,238

0.61%

29.66%

-2.91%

Amazon (NASDAQ:AMZN)

$1,214

0.60%

39.44%

-6.63%

Hewlett-Packard (NYSE:HPQ)

$1,104

0.54%

-17.76%

-0.88%

Norfolk Southern (NYSE:NSC)

$1,093

0.54%

1.09%

6.58%

Apache (NYSE:APA)

$1,088

0.54%

30.45%

-0.23%

Walt Disney (NYSE:DIS)

$1,053

0.52%

5.45%

14.45%

Johnson Controls (NYSE:JCI)

$1,046

0.52%

1.28%

7.12%

Metlife (NYSE:MET)

$998

0.49%

26.57%

3.17%

Ishares Russell Midcap(NYSEARCA:IWR)

$994

0.49%

-1.73%

4.14%

Qualcomm (NASDAQ:QCOM)

$984

0.49%

9.01%

8.68%

Honeywell (NYSE:HON)

$931

0.46%

3.40%

6.47%

Pepsico (NYSE:PEP)

$928

0.46%

47.14%

-0.28%

Ishares MSCI Safe Index (NYSEARCA:EFA)

$914

0.45%

66.94%

1.92%

Ishares S&P 500 Index (NYSEARCA:IVV)

$913

0.45%

475.62%

4.10%

Taiwan Semiconductor (NYSE:TSM)

$893

0.44%

8.38%

-2.63%

Johnson & Johnson (NYSE:JNJ)

$884

0.44%

36.39%

-2.63%

Devon Energy (NYSE:DVN)

$862

0.43%

18.54%

12.15%

Spdr S&P Retail (NYSEARCA:XRT)

$843

0.42%

1.50%

1.80%

TOTAL/AVERAGE

$87,469

43.19%

2.43%

The year-to-date weighted-average performance of top 50 holdings is 2.43% which is well below the S&P 500 return of 4.05%. For individual investors, that is a strong incentive to invest in low-cost, index-tracking funds instead of high-cost mutual funds. A quick snapshot of the top holdings shows that JPMorgan reduced 13 of current holdings. The average year-to-date return of these 13 holdings was -0.13%. JP Morgan reduced Phillip Morris holdings by 34% and IBM holdings by 10%. That was not a wise decision; Phillip Morris gained 9%, and IBM gained 11% since January. There is one stock that the investment giant is extremely bullish about: JPMorgan increased Yanzhou Coal holdings by 59,822% making it the second largest in portfolio after SPY. Yanzhou is a highly profitable business that operates in mainland China. It has a strong balance sheet with a current ratio of 2.2 and profit margin of 20%. One might want to keep an eye on that company.

Source: JPMorgan's Favorite Holdings