Filed under: Investment Strategy
Who Is the “Smart Money” in the Stock Market?
If you hang around the stock market long enough, you hear a lot about “smart money” or “whales.” (Also known as “Big Hands” in some regions.)
In practice, these aren’t just rich individuals. They’re the massive pools of capital that can literally move markets:
In market terms, they are usually called “smart money” or “whales.” They tend to share three core traits.
1. They Can Decide the Direction of a Stock
No matter how hard retail traders try, there’s a limit to how much they can move a stock price. Whales are different: they deploy hundreds of millions or even billions at a time. A single large institution building a position can set the trend for a stock, at least over the medium term.
2. Better Access to Information
Whales have far better access to information than we do. By the time individual investors see something on the news, there’s a good chance smart money has already acted.
This is why some traders specialize in tracking:
They’re trying to read the footprints of big money.
3. They Can Wait
Big players—especially pension funds and long-only institutional investors—don’t panic over short-term swings. They have deep pockets and can sit on a position until it reaches their target, even if it takes years.
Because of that, simply understanding where smart money is flowing can sometimes lead to attractive opportunities. Today, let’s look at three relatively low-priced stocks that Wall Street institutions have been quietly accumulating.
1. The Fintech Dark Horse – SoFi Technologies (SOFI)
Institutional ownership: 38.4%
Institutional inflows (last 12 months): $3.23 billion
Institutional outflows (last 12 months): $2.38 billion
SoFi is not just another online bank. It’s building a financial super app where users can borrow (student loans, personal loans), save, invest, and use credit cards all in one place. On top of that, SoFi runs Galileo, a technology platform that provides payment and banking infrastructure to other fintech companies.
🐋 What Are the Whales Doing?
JPMorgan’s huge position boost
JPMorgan, the biggest bank on Wall Street, reportedly increased its SoFi holdings significantly in a recent portfolio update. It’s interesting because SoFi is, in a way, a competitor in financial services.
BlackRock as a major holder
BlackRock remains one of the largest institutional shareholders in SoFi. In recent quarters, they have continued to adjust their substantial stake, signaling continued interest in the fintech space.
💡 Why Smart Money Likes SoFi
SoFi used to be a chronic loss-maker, but now it has turned a corner. Even in a high-rate environment that’s normally tough for loan growth, SoFi managed to turn profitable and sustain it. Institutions know that when a stock crosses the line from red ink to black, the re-rating can be dramatic. That’s one of the big reasons whales are quietly building positions here.
2. Google’s Bet on “Eyes in Space” – Planet Labs (PL)
Institutional ownership: 41.7%
Institutional inflows (last 12 months): $380 million
Institutional outflows (last 12 months): $60 million
Planet Labs operates hundreds of small satellites that image the entire Earth every day, then sell that data to governments, agriculture companies, and intelligence agencies on a subscription basis. Think of it as a kind of “Space-based Netflix or Google for Earth imagery.”
🐋 What Are the Whales Doing?
Net institutional buyers
Recent data suggests that money is flowing into Planet Labs more than it is flowing out, indicating accumulation by longer-term funds.
Google as a key early investor
Google was an early backer of Planet Labs and still holds a significant stake (over 10%). The Google Earth team and Planet Labs already have a close working relationship and a long-term partnership.
💡 Why Smart Money Likes Planet Labs
Several themes are converging here:
Growing contracts with defense, corporate clients, and European governments.
Expanded collaboration with global AI companies.
Exposure to Space + Data + AI.
Planet’s data is used for defense, climate monitoring, and agriculture. It’s often viewed as a beneficiary of AI-driven analytics, not just a “space stock.” That mix of recurring revenue and proprietary data is why institutions are paying attention.
3. Toyota’s Big Bet on the Sky – Joby Aviation (JOBY)
Institutional ownership: 53.0%
Institutional inflows (last 12 months): $2.07 billion
Institutional outflows (last 12 months): $715 million
Joby Aviation develops and plans to operate electric vertical take-off and landing (eVTOL) aircraft for urban air mobility. In simple terms: think quiet, electric air taxis designed to move people across cities and regions.
🐋 What Are the Whales Doing?
Heavy institutional presence
Among the three names in this post, Joby has one of the highest institutional participation rates (over 50%). The most notable shareholder is Toyota, which owns around 14% of the company.
Baillie Gifford as a key long-term backer
Joby’s second-largest shareholder is Baillie Gifford. If the name doesn’t ring a bell: they’re famous for being an early, high-conviction investor in Tesla. They’ve been a long-term investor in Joby, signaling they see this as a multi-year story.
💡 Why Smart Money Likes Joby Aviation
Commercialization is getting close. Many see 2025 as the year when the UAM (urban air mobility) market starts to cross from concept into early reality.
Institutions are attracted by Joby’s “three-piece puzzle”:
Technology: Joby’s aircraft and eVTOL tech.
Capital + Manufacturing: Toyota’s money and production know-how.
Operational Expertise: Partners like Uber and Delta Air Lines.
If commercial operations scale, Joby isn’t just another “airline stock.” It could sit at the center of a new industry with its own pricing and network economics.
My Take: What These 3 Stocks Have in Common
These three names share a few key traits:
That’s exactly the combination smart money loves: Big addressable market + early advantage + a price that still leaves room for upside.
So institutions quietly add, quarter after quarter.
But there are trade-offs.
The more institutions get in, the more clearly you can see shakeout phases, where retail investors get scared out on drawdowns. Because these are future-oriented industries, the gap between story and current reality can be big, which means prices can swing between overheating and cooling again and again.
These are not the kind of stocks you go all-in on hoping for a quick win. They make more sense as long-term growth names, bought gradually with spare capital, and held with a multi-year time horizon.
Use the hints from smart money as one input, but remember: The final finger that presses the buy button is always yours.
This post is for informational and educational purposes only and is not a recommendation to buy or sell any security. Investing involves risk, and all decisions should be made based on your own judgment and risk tolerance.
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