These Hedge Funds Loaded Up On JPMorgan Sales Right Before The Bank's Stock Plummeted

Paul Tudor Jones

Photo: Vimeo

13-F season is nigh, and it’s no surprise that everyone’s focused on the hedge funds that may have loaded up on the most talked-about financial stock these days—JP Morgan.Since last week, shares of the bank have fallen over 10% after the company revealed a $2 billion loss related to a synthetic credit derivatives portfolio.

Here were some of the most notable funds that stocked up on JPM—

  • Paul Tudor Jones’ Tudor Investments bought up 1.2 million shares of JPM.
  • Louis Bacon’s Moore Capital upped their JPM stake 6.6 million last quarter from the 450,000 shares they had at the end of 2011.
  • Leon Cooperman of Omega Advisors doubled his JPM investment to 2.2 million shares before the end of March, according to Reuters.

The latest 13-Fs disclose hedge fund holdings between the end of last December to the end of March this year, way before before JP Morgan revealed its $2 billion trading blunder. Although we don’t know when these hedge funders picked up the shares, we can only hope they didn’t buy them in March—when share prices peaked.

There’s also a chance these hedge funders could still be making money off their shares—JPM is up over 8% year-to-date.

But since the big focus lately has been on hedge funds that are trying to take up the other side of the JP Morgan’s losing derivatives bet and profit off that, we thought this might be a good reminder that some hedge funds could still be making money off the bank’s stock alone, or suffering a worse fate.

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