Perry Capital Initiates Ally Financial Stake, Reduces Herbalife

Aug 13, 2014 5:36 pm ET

Aug. 13 (Bloomberg) -- Perry Capital, the $10.9 billion hedge-fund firm run by Richard Perry, bought stakes in Ally Financial Inc. and Allergan Inc. and cut its holding in nutrition company Herbalife Ltd. during the second quarter.

Perry, based in New York, acquired 14.3 million shares of Detroit-based Ally that were valued at $341.2 million as of June 30, according to a filing with the U.S. Securities and Exchange Commission today. Ally was the hedge-fund firm’s second-largest U.S.-listed stock holding, after American International Group Inc.

Perry sold 800,000 shares of Herbalife, leaving it with 4 million shares worth about $258 million as of the end of the quarter, according to the filing. It sold out of its 5.2 million shares of the real estate investment trust Equity Commonwealth.

Ally, the auto lender rescued by the U.S. government during the 2008 financial crisis, raised about $2.6 billion in its initial public offering during the second quarter. The U.S. provided about $17.2 billion to keep the firm alive and money flowing to carmakers during the depths of the crisis in return for a majority stake. The Treasury Department still holds a 16 percent stake in the Detroit-based company, according to data compiled by Bloomberg. Ally shares have fallen 6.2 percent since the April IPO.

Michael Neus, general counsel at Perry, didn’t immediately return a message seeking comment on the filing.