Moore Capital Buys Bank of America, Facebook, Cisco Systems


Moore Capital Management LP, the investment management firm headed by Louis Moore Bacon recently submitted its 13F filing with the Securities and Exchange Commission (SEC) indicating that its equity investments were worth $4,704,362,000 for the third quarter that ended September 30, 2013.

During the period, the investment management firm 204 new equities and sold its entire position in 147 stocks. Moore Capital also increased its stockholdings across 55 stocks and reduced its stake in 70 companies.

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Moore Capital’s largest positions

Based on the portfolio of Moore Capital, its largest position for the third quarter is SPDR S&P 500 ETF Trust (NYSEARCA:SPY). The company has a put option and call option for the stock that represents 17.5% and 7.86% of its portfolio, respectively.

Its second largest-position is iShares Russell 2000 Index (ETF) (NYSEARCA:IWM) with a put option that represents 3.97% of its portfolio, followed by Hartford Financial Services Group Inc (NYSE:HIG) 3.18% and Assured Guaranty Ltd. (NYSE:AGO) 2.75%.

Moore Capital’s new acquisitions

Some of the significant acquisitions of Moore Capital include a put option of 5,000,000 shares of Cisco Systems, Inc. (NASDAQ:CSCO) worth $117,155,000, which represents 2.49% in its portfolio, and a call option of 5,000 million shares of Bank of America Corp (NYSE:BAC) worth $69,000,000, which accounts for 1.47% of its portfolio. Aside from the call option, the investment management firm also purchased 4,334,881 shares of the bank worth $59,821,000, which represents another 1.27% of its portfolio.

Today, the stock price of Cisco Systems, Inc. (NASDAQ:CSCO) declined 11% to $21.35 per share after the company projected that its revenue will decline by 8% to 10% year-over-year next quarter.  The company said its first quarter financial results were $0.53 earnings per share on $12.1 billion revenue.

On the other hand, the shares of Bank of America Corp (NYSE:BAC) gained more than 1% to $14.80 per share today. The United States government is seeking a maximum penalty of $863 million from the bank related to the mortgage fraud case against it for allegedly selling defective loans to  Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC).

Moore Capital acquired 1,787,150 shares of Facebook Inc (NASDAQ:FB) worth $89,769,000. The stock represents 1.91% of its portfolio. Over the past 52 weeks, the stock price of the social network giant increased from $21.65 to its highest level at $54.83 per share. The stock is trading around $48.99 per share as of this writing.