Bloomberg News

Moore Bought JPMorgan Stock Before Bank Disclosed Trading Loss

May 15, 2012

Moore Capital Management LLC, the $15 billion hedge fund founded by Louis Moore Bacon, boosted its stake in JPMorgan (JPM:US) Chase & Co. before shares of the bank plunged because of a $2 billion trading loss.

The hedge fund, based in New York, bought about 6 million shares of JPMorgan in the first quarter and held a stake valued at about $297.3 million, according to a filing today with the U.S. Securities and Exchange Commission. Moore owned 450,000 shares of the New York-based bank at the end of last year.

Shares of JPMorgan have fallen 12 percent through yesterday since the company disclosed the trading loss on May 10. The trades in synthetic credit derivatives led to the resignation of senior managers and prompted Chief Executive Officer Jamie Dimon to say the investments were “flawed, complex, poorly reviewed, poorly executed and poorly monitored.”

Moore also bought 6.8 million shares of San Francisco-based Wells Fargo & Co. (WFC:US) valued at $233 million, according to the SEC filing. Shares of the biggest U.S. mortgage lender have risen 18 percent this year. Moore purchased 5.2 million shares of Minneapolis-based U.S. Bancorp (USB:US) worth $163.2 million.

Money managers who oversee more than $100 million in U.S. equities must file a Form 13F within 45 days of the end of each quarter to list their holdings in stocks that trade on U.S. exchanges, as well as options and convertible debt.

To contact the reporter on this story: Jesse Westbrook in London at jwestbrook1@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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Companies Mentioned

  • JPM
    (JPMorgan Chase & Co)
    • $57.67 USD
    • -1.24
    • -2.15%
  • WFC
    (Wells Fargo & Co)
    • $50.9 USD
    • -1.20
    • -2.36%
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