Updated with additional information on funds selling Bank of America.NEW YORK ( TheStreet) -- Hedge funds pared their exposure to the financial sector in the second quarter as the sovereign debt crisis in Europe deepened and the U.S. economy showed signs of stalling. An examination of the regulatory filings with the Securities and Exchange Commission shows that smart money dumped their exposure to large money-center banks including JPMorgan Chase ( JPM), Bank of America ( BAC) and Wells Fargo ( WFC). Citigroup ( C) remained among the top holdings of hedge funds, according to filings data compiled by Bloomberg, and continued to see selective buying. The big hedge fund names seemed divided in their outlook for Citigroup and Wells Fargo. David Tepper of Appaloosa Management , John Paulson of Paulson & Co and George Soros all cut back their exposure to Citigroup. Meanwhile Bill Ackman added to his stake in Citigroup, while Lee Ainslee's Maverick Capital took a fresh stake in the company.
|John Paulson (Paulson & Co.)|