JPMorgan's London Whale May Bite Hedge Funds

New York (TheStreet) - In coming days hedge funds will unveil the positions they bought and sold in the first quarter, giving investors a new set of tea leaves to read on themes like M&A, activist plays and value stock picks.

But after some highly followed managers like John Paulson liquidated most of their big bank positions in the fourth quarter and others like Warren Buffett bought into a beginning of year bank rally on strong earnings and Federal Reserve-approved dividend boost plans, it will be interesting to see if any of Wall Street's smartest minds got bitten by buying JPMorgan's(JPM) shares in the first quarter, just before its London Whale emerged at the beginning of April.

In filings that represent a snapshot of a fund's holdings at the end of the first quarter, or March 31, already David Tepper's Appaloosa Management has upped its big bank holdings with a big purchase of Citigroup(C) stock without buying into JPMorgan shares that have been hit in April and May as revelations of a giant and lossmaking trading position emerged. Will other funds be so lucky?

David Tepper (Appaloosa Management)

Billionaire hedge fund manager David Tepper of Appaloosa Management counted Citigroup and tech plays like a Nasdaq-based ETF PowerShares QQQ(QQQQ) , and Google(GOOG) among his biggest new stock buys of the first quarter. Meanwhile, the fund added to positions in Apple(AAPL) , United Continental(UAL) and US Airways(LCC) and sold off portions of stakes in CVR Energy(CVI) , Dean Foods(DF) and Macy's(M) .