NEW YORK (
) -- Three large hedge funds went heavily into
during the fourth quarter, while Steven Cohen's SAC Capital Advisors trimmed its position significantly.
more than doubled its Citigroup investment during the fourth quarter, purchasing 66.3 million shares, bringing its position up to 117.5 million shares worth $556 million as of December 31, or 12% of the investment manager's total portfolio, according to Capital IQ.
This was Appaloosa's largest position at the end of the year. Meanwhile, the investment manager added to its
Bank of America
positions, while trimming its holdings in
Fifth Third Bancorp
As of December 31, Appaloosa had 25.1 million shares of Bank of America, worth $373 million or 8% of the manager's portfolio (its second largest position), while holding 7.5 million Wells Fargo shares worth $253 million, and 4.2 million shares of Wells Fargo worth $136 million.
Soros Fund Management
bought 10.2 million Citi shares during the fourth quarter, bringing its total stake to 10.7 million shares worth $53 million at year-end, although this position was only 1% of the total portfolio. Soros's largest position was 4.7 million
SPDR Gold Shares
, worth $655 million as of December 31, according to Capital IQ. Through Thursday's market close, GLD was down 3% year-to-date, to $135.04.
Shumway Capital Partners
added 40.5 million shares to its Citi stake during the fourth quarter. The total position was 141.1 million shares as of December 31, worth $693 million or 9% of the fund, as its largest position. The fund, based in Greenwhich, Conn. was founded by Shumway in 2002, and announced it would return all external money to investors by the end of the first quarter.
SAC Capital Advisors
sold 1.2 million Citigroup shares during the fourth quarter, bringing its position down to 4.8 million shares worth $23 million as of December 31, which was a very small component of the total portfolio. The investment manager purchased 597 thousand shares of
during Q4, bringing its holdings up to 737 thousand shares, worth $31.3 million at the end of 2010.
Steve Cohen's SAC Capital was contacted by federal authorities in a burgeoning probe of insider trading in the money management industry.
Written by Philip van Doorn in Jupiter, Fla.
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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.