Paulson, Berkowitz Share in BofA (BAC) Pain
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Price: $38.32 -0.13%
Overall Analyst Rating:
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Dividend Yield: 2.8%
Revenue Growth %: -1.9%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.8%
Revenue Growth %: -1.9%
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It's tough being a hedge fund boss, just ask John Paulson.
With his latest 13F quarterly filing, Paulson smartly cut his stake in Bank of America (NYSE: BAC) from 123,634,429 to 60,444,779 common shares. He took too much of a pounding, but it wasn't just in the second quarter. At the start of 2011, Paulson's fund held 123,960,951. With BofA closing at $13.32 on December 31, 2010, the value of the holding was $1,651,159,867. Paulson sold 326,522 shares through the quarter, to 13,634,429, and with BofA closing relatively flat through the quarter, no big loss was incurred.
Paulson's BofA holding was valued at a similar $1,651,159,867 starting the second quarter. With shares moving from $13.32, to $10.96 at the end of June, the holding moved $296.13 million lower to about $1,355,033,341. Of course, Paulson cut his stake in the bank to 60,444,779 shares, but no one is sure when that happened (BofA regularly has nine-digit volume trading days). We'll assume he moved out periodically through the quarter.
Now, Paulson is already having a tough August, his funds initially down 21 percent and 31 percent through the first few days. If he hasn't sold, the value of his BofA holding moved from $670,332,599 to $363,273,121, a loss of about $307.06 million.
On BofA alone, Paulson's funds may be down as much as $603.19 million for 2011, though, again, that's assuming the worst case for his position in the company.
Moving on now to Bruce Berkowitz's Fairholme Capital. Berkowitz increased his stake in BofA from 92,648,715 at the end of March, 2011, to 99,647,755 at the end of June, 2011. Again, assuming the worst, Berkowitz's stake may have gone from $1,234,080,883 to $1,105,093,602 (don't forget the addition of 6,999,040 shares at an average price of $12.14 through the quarter is $84,968,345). From the end of June, Berkowitz's stake may be worth $598,883,007, for a paper loss of $506.21 million.
Again, no one can be sure when Paulson or Berkowitz bought or sold, and these numbers are worst-case estimates. They may have hedged their exposure or sold early in the quarters.
All in all, we're pretty sure John and Bruce are still doing well. After all, it's not how you start, it's how you finish.
Numbers were retrieved from Streetinsider's Hedge Fund Insider.
With his latest 13F quarterly filing, Paulson smartly cut his stake in Bank of America (NYSE: BAC) from 123,634,429 to 60,444,779 common shares. He took too much of a pounding, but it wasn't just in the second quarter. At the start of 2011, Paulson's fund held 123,960,951. With BofA closing at $13.32 on December 31, 2010, the value of the holding was $1,651,159,867. Paulson sold 326,522 shares through the quarter, to 13,634,429, and with BofA closing relatively flat through the quarter, no big loss was incurred.
Paulson's BofA holding was valued at a similar $1,651,159,867 starting the second quarter. With shares moving from $13.32, to $10.96 at the end of June, the holding moved $296.13 million lower to about $1,355,033,341. Of course, Paulson cut his stake in the bank to 60,444,779 shares, but no one is sure when that happened (BofA regularly has nine-digit volume trading days). We'll assume he moved out periodically through the quarter.
Now, Paulson is already having a tough August, his funds initially down 21 percent and 31 percent through the first few days. If he hasn't sold, the value of his BofA holding moved from $670,332,599 to $363,273,121, a loss of about $307.06 million.
On BofA alone, Paulson's funds may be down as much as $603.19 million for 2011, though, again, that's assuming the worst case for his position in the company.
Moving on now to Bruce Berkowitz's Fairholme Capital. Berkowitz increased his stake in BofA from 92,648,715 at the end of March, 2011, to 99,647,755 at the end of June, 2011. Again, assuming the worst, Berkowitz's stake may have gone from $1,234,080,883 to $1,105,093,602 (don't forget the addition of 6,999,040 shares at an average price of $12.14 through the quarter is $84,968,345). From the end of June, Berkowitz's stake may be worth $598,883,007, for a paper loss of $506.21 million.
Again, no one can be sure when Paulson or Berkowitz bought or sold, and these numbers are worst-case estimates. They may have hedged their exposure or sold early in the quarters.
All in all, we're pretty sure John and Bruce are still doing well. After all, it's not how you start, it's how you finish.
Numbers were retrieved from Streetinsider's Hedge Fund Insider.
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