JPMorgan 'Whale' Bites Moore Capital, Tudor
New York (TheStreet) -- Although a loss tied to a giant position built by what Wall Street has dubbed a "London Whale" trader added little drama to JPMorgan Chase's(JPM) annual shareholder meeting, quarterly filings of stock positions signal that it's taken a bite out of prominent hedge funds.
After the bell on Tuesday, Tudor Investment's and Moore Capital Management, two of the best returning and most sophisticated hedge funds in the world, disclosed that they built large share positions in JPMorgan during the first quarter which ended on March 31. The postions were made just before shares of the nation's largest bank were hit in April and May amid revelations of a giant and lossmaking trading position.
In filings that represent a snapshot of each fund's holdings at the end of the first quarter, or March 31, Moore Capital Management reported it bought roughly 6.5 million JPMorgan shares worth a total of $297.3 million. Meanwhile Tudor disclosed that it built a $58.5 million position in roughly 1.27 million JPMorgan shares. Both stakes are valued at $45.98, JPMorgan's closing price on Mar 31, or the end of the first quarter.
Were Tudor and Moore to have maintained those stakes roughly midway through the second quarter, they're likely to have generated big losses as JPMorgan's shares were hit by a $2 billion trading loss it disclosed earlier in May. From the end of the first quarter to Tuesday's close, JPMorgan shares are off over 21%, closing trading at $36.24. In the past five trading days, shares have plummeted over 12%, amid uncertainty tied to the loss.
For Tudor, its purchase of JPMorgan represented its biggest new single stock position in the quarter, but the investment dwarfed a $136.8 million new position in the Financial Select Sector SPDR ETF(XLF ) . Other big buys include, Becton Dickinson(BDX) and Waters Corp.(WAT) . The hedge fund liquidated minor positions in Virgin Media(VMED) , Noble Energy(NE) , Apple(AAPL) and GNC(GNC) .