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Moore Capital Dumps JPMorgan, Flees Banks in Asset Sale

NEW YORK ( TheStreet) -- Louis Bacon's Moore Capital Management liquidated positions in JPMorgan Chase (JPM - Get Report), Wells Fargo (WFC - Get Report) and U.S. Bancorp (USB - Get Report) in a quarter market by large stock sales and few new notable buys.

Moore Capital's bank stock sales highlighted a quarter where the secretive, macro-oriented hedge fund made few new investments in risky, according to 13F filings with the Securities and Exchange Commission compiled by Bloomberg.

Bacon told investors in an August letter cited by Reuters that he planned to return 25% -- or $2 billion - in fund assets as equity opportunities withered.

In total, Bacon sold nearly $700 million worth of stock among the three bank the fund held, led by a $297 million sale of JPMorgan shares and a $233 million sale of Wells Fargo shares. Moore Capital also sold $163 million of U.S. Bancorp shares.

Other multi-million share liquidations included the Vanguard MSCI Emerging Market ETF (VWO) and Williams Companies (WMB), the filings show.

Moore Capital - which divides its assets between a Global Investment Fund and a Macro Fund - was a noted seller of shares across the board in the quarter ended on June 30, while it made few large purchases, the filings show.

While the funds bank stock sales were its largest in the quarter, Moore also pared its stakes in oil and gas stocks, led by a near $100 million sale of Plains Exploration & Production (PXP) and a $80 million stock sales of EOG Resources (EOG) and Marathon Oil (MRO).

Moore Capital's largest new position was a $25 million-plus purchase of the iShares iBoxx High Yield Bond ETF (HYG) and a $20 million plus stake in Johnson & Johnson (JNJ - Get Report). Other notable investments included $23 million purchase of financial guarantor Assured Guaranty (AGO ) and embattled snacks company Diamond Foods (DMND ).

For more on hedge fund financial sector investments, see why John Paulson is digging his heels into Hartford Financial .

Also see why Warren Buffet shuns investment banks for more on financial sector investing strategies

-- Written by Antoine Gara in New York

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DMND $37.56 0.97%
JPM $62.55 -1.90%
JNJ $112.72 -0.03%
WFC $50.01 -1.10%
USB $42.52 -1.00%


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