Moore Capital Management LP, Louis Moore Bacon’s hedge fund, sold its stakes in JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC) and U.S. Bancorp last quarter as financial companies led declines in U.S. stocks.
The hedge fund sold 6.47 million shares of New York-based JPMorgan, 6.83 million shares of Wells Fargo in San Francisco, and 5.15 million shares of Minneapolis-based U.S.Bancorp, according to a filing today with the U.S. Securities and Exchange Commission. The stakes had a combined value of $639.4 million at the end of the first quarter.
Financial companies lost 7.3 percent in the second quarter, the biggest decliners among 10 industries in the Standard & Poor’s 500 Index. Hedge funds Eton Park Capital Management LP, TPG-Axon Capital Management LP and Viking Global Investors LP also cut their holdings of financial stocks in the period.
Eton Park, the New York hedge fund run by Eric Mindich, sold 5.5 million shares of Citigroup Inc. (C), its entire stake, according to a separate filing. The fund trimmed its holding in Morgan Stanley by 9.82 million shares to 5.18 million shares.
Viking, run by Andreas Halvorsen in New York, eliminated its Citigroup stake, selling 8.45 million shares, according to a filing. TPG-Axon, the $4 billion fund run by Dinakar Singh, sold its entire stake in JPMorgan, 3.13 million shares valued at $143.9 million at the end of the first quarter.
Third Point LLC, the $8.7 billion hedge fund run by Daniel Loeb, sold its entire stake in Wells Fargo, according to a filing.
As some hedge funds divested their bank stakes, London- based Odey Asset Management LLP, run by Crispin Odey, added to its holdings in Wells Fargo, Citigroup and JPMorgan, making the companies its three largest U.S. stock holdings at the end of the second quarter.
The hedge fund bought 269,373 shares of Wells Fargo, boosting its stake to 7.31 million shares, according to a filing. Odey added 90,036 shares of Citigroup, raising its holding to 4.17 million shares, and purchased 645,372 shares of JPMorgan, lifting its position to 3.04 million shares as of June 30.
Odey divested its stake in Charlotte, North Carolina-based Bank of America Corp., selling 740,000 shares.
Moore Capital’s Bacon told clients on Aug. 1 that he plans to give back $2 billion, or 25 percent of his main hedge fund, to investors, saying it may be too big for him to achieve past returns as “liquidity and opportunities have become more constrained.”
Moore, which is based in New York, added 275,000 shares of the iShares iBoxx High Yield Corporate Bond (HYG) Fund in the quarter, valued at $25.1 million as of June 30, and 120,000 shares of SPDR Gold Trust (GLD), valued at $18.6 million. The fund bought 302,600 shares of Johnson & Johnson, the world’s biggest health- products maker.
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