Skip to comments.Smart Money: Hedge funds sell faltering U.S. banks
Posted on 05/31/2011 9:49:17 PM PDT by Nachum
(Reuters) - The recovery of Citigroup and Bank of America provided famed hedge fund managers like Lee Ainslie and Jeff Altman some of their biggest gains last year, but now the smart money is getting out while the getting is good.
With Ainslie's Maverick Capital, Altman's Owl Creek Asset Management and other major funds backing away from the banking sector in the first quarter, financials suffered the biggest decrease in sector holdings among the Smart Money 30, a group of some of the largest stock-picking hedge funds.
Ainslie, Altman and Stephen Cucchiaro's Windhaven Investment Management dumped their entire holdings in Citigroup and Bank of America during the quarter, according to data compiled by Thomson Reuters.
(Excerpt) Read more at reuters.com ...
Time to buy....can’t help but wonder if these kind of stories are planted to scare people and drive down prices so the very hedge funds that are supposed to be selling, are actually buying.
Citigroup and Bank of America have been virtually insolvent for at least 3 years along with Wells Fargo and Chase. The govt is propping them up or they would already have failed. You are nuts if you buy stock in any of these institutions. At some point they will have to be allowed to fail. At the very least the govt will break them up and sell them off in sections as they will eventually do with Fannie and Freddie. Stockholders will get hosed.
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