Famed hedge fund manager John Paulson has acquired many shares of Bank of America, CNBC’s Charlie Gasparino reports.We’ve heard that Paulson picked up BAC preferred stock that he then converted into common, pocketing a big profit in the process. The hedge fund Third Point is also thought to have picked up the preferred stock at 57 cents on the dollar and then converted it into common stock at $10.
Paulson & Co bought 168 million BAC in the second quarter, a regulatory filing showed, making it the lender’s fourth largest shareholder. That’s a $2.7 billion stake. It’s Paulson’s second-largest holding. (The first is SPDR Gold Trust.)
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