Moore Invests in Homebuilders ETF While Cutting Dividend Stocks

Moore Capital Management LLP, the $15 billion hedge fund founded by Louis Moore Bacon, bought an exchange-traded fund that tracks home builders and sold an ETF that tracks the performance of high-dividend paying stocks.

Moore purchased 3 million shares of the SPDR S&P Homebuilders ETF (XHB) in the fourth quarter, valued at about $51.3 million as of Dec. 31, according to a filing today with the U.S. Securities and Exchange Commission. The ETF tracking the S&P homebuilders index fell 1.7 percent last year amid concerns that a slowing U.S. economy would hurt the housing market. It rallied 15 percent in 2010 and 26 percent in 2009.

The firm sold 3.55 million shares of iShares DJ Selected Dividend fund, valued at $171.3 million, according to the filing. Moore had purchased the iShares ETF in last year’s third quarter.

Moore also bought 6.1 million shares of lender First Niagara Financial Group Inc. (FNFG) valued at $52.6 million. It sold 1.3 million shares of the Market Vectors Gold Miners ETF worth $69 million and 1.7 million shares of Verizon Communications Inc. (VZ) valued at $62.6 million.

To contact the reporter on this story: Jesse Westbrook in London at jwestbrook1@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.