Moore Capital Management is a US-based hedge fund that was founded in 1989 by billionaire Louis Bacon. He uses macro based themes such as inflation, economic growth, central bank policy and national politics to devise broad themes and strategies for investment. According to the Wall Street Journal, Moore Capital Management cut management fees on its largest fund, Macro Managers, from 3% to 2.5% as the hedge fund industry comes under investor redemption. Moore’s biggest macro fund suffered significant draw downs in the first few months of 2016 and was down by 3.8% as of the end of the third quarter 2016. Moore Capital Management had a portfolio value of $3 billion at the end of December with technology and finance amassing the largest shares.
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Facebook Inc. (NASDAQ:FB) was the top technology stock of Moore Capital Management despite the fund selling 370,750 shares and reducing its total position to 429,508 shares worth $49 million at the end of December. On the other hand, Andreas Halvorsen‘s Viking Global Investors bought an additional 228,753 shares of Facebook Inc. (NASDAQ:FB) and held 18.98 million shares at the end of December. The company recently announced a “video first” strategy as it thinks that the next content wave will be video and could help the company tap into TV budgets. For the fourth quarter, Facebook Inc. (NASDAQ:FB) reported earnings of $1.41 per share on revenues of $8.8 billion, beating analyst estimates of $1.31 and $8.5 billion, respectively. Revenues were driven by increasing mobile video ad revenue. While Instagram reported having more than 600 million monthly active users, both WhatsApp and Facebook Messenger has over 1 billion monthly active users at the end of the last quarter. According to our database, the number of funds long Facebook Inc. (NASDAQ:FB) decreased by three to 146, while the value of their holdings declined by 23% during the October-December.
During the fourth quarter, Moore Capital Management boosted its stake in Bank of America Corp (NYSE:BAC) by 260% and held 2 million shares worth $44.2 million. Tiger cubs Stephen Mandel and Philippe Laffonte also grew bullish on the stock as they initiated positions during the fourth quarter. Bank of America Corp (NYSE:BAC)’s stock has performed extremely well after Donald Trump’s election victory similar to other financial stocks. Shares of Bank of America Corp (NYSE:BAC) are up by 11% year-to-date. The market thinks that financial companies will do well as Trump has said that he would cut the regulations stopping the growth of financial companies. The number of investors from our database, having a stake in Bank of America Corp (NYSE:BAC) advanced to 139 from 112 during the fourth quarter and the value of their holdings increased by 72% to $12.48 billion quarter-over-quarter.