Soros Joins Hedge Fund Retreat From Bank Stocks in First Quarter

May 15, 2014 8:17 pm ET

May 15 (Bloomberg) -- George Soros’s family office and Tudor Investment Corp. were among asset managers that cut their stakes in financial-services stocks in the first quarter, getting out before many of the shares tumbled on poor earnings.

Soros Fund Management LLC, which is based in New York and invests the longtime hedge-fund manager’s personal wealth, sold out of its positions in JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp., according to a regulatory filing today. JPMorgan has dropped 12 percent since March 31 and Bank of America has slid 15 percent.

A decline in fixed-income trading eroded first-quarter results for some of the biggest U.S. banks including Goldman Sachs Group Inc., JPMorgan and Bank of America. The trend may continue this quarter, as JPMorgan said earlier this month that bond and equities trading revenue will fall about 20 percent from last year’s second quarter.

Arrowstreet Capital LP, a hedge-fund firm based in Boston, exited JPMorgan in the first quarter and reduced its positions in Citigroup and Bank of America, its quarterly filing shows. Adage Capital Management LP, another Boston-based firm, sold off Bank of America, Goldman Sachs Group Inc. and Morgan Stanley. Jon Jacobson’s Highfields Capital Management LP, also based in Boston, sold off JPMorgan while adding to its Citigroup holding.

Moore Capital Management LP, which is based in New York and run by Louis Moore Bacon, sold most of its stake in Capital One Financial Corp., bringing the value of the holding to $59.8 million at the end of last quarter, down by $147 million from three months earlier. The firm added to its stake in JPMorgan, which was valued at $291.3 million at the end of the first quarter, and to Citigroup and Wells Fargo.

Paul Tudor Jones’s Greenwich, Connecticut-based Tudor Investment Corp. trimmed its positions in Citigroup, PNC Financial Services Group Inc. and Bank of America, while adding to stakes in Goldman Sachs and JPMorgan, according to its filing data.

Viking Global Investors LP, run by Andreas Halvorsen out of Greenwich, sold its Citigroup stake.

--With assistance from Elizabeth Dexheimer in New York.