As Marblehead's shares fell, it weighed down some mutual funds. The funds with the largest stakes in Marblehead include Vanguard Selected Value (VASVX), Baron Growth (BGRFX) and Davis Financial A (RPFGX); the funds own 1.96%, 1.51% and 1.29% of outstanding Marblehead stock, respectively.
The holding amounts for the funds are as of the end of 2006, except for the Baron fund, which is as of the end of September 2006, according to Morningstar.
Despite the beating Marblehead took, the funds heavy in the company managed to keep their heads above water for the day, albeit slightly. The Davis Financial fund should have been hardest hit by Marblehead's woes. While the company accounts for 2.21% and 1.86% of the Vanguard and Baron funds, it makes up 6.5% of the Davis fund's holdings. But the fund eked out a 0.15% gain on the day. The Vanguard fund rose 0.45%, and the Baron Growth fund even had a decent day, rising almost 1%.
J.C. Flowers, along with private-equity firm Friedman Fleischer & Lowe, agreed to pay $60 a share, or $25 billion, in cash for Sallie Mae. The groups will invest $4.4 billion and own 50.2% of the lender. Bank of America (BAC - commentary - Cramer's Take) and J.P. Morgan Chase (JPM - commentary - Cramer's Take) will each invest $2.2 billion and will each own 24.9%.
P.S. Will you be there when Cramer makes his next move?
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