Moore Capital, the $15 billion hedge fund run by Louis Moore Bacon, bought 40.9 million Citigroup shares in the period ended Dec. 31, according to a filing yesterday with the U.S. Securities and Exchange Commission. The stake was worth about $194 million at year-end. Appaloosa, the hedge fund founded by David Tepper, more than doubled its holdings in the bank run by Chief Executive Officer Vikram Pandit.
“Banks have been a pretty profitable trading area for a lot of the hedge funds and they are doing it again with Citi,” said Michael Holland, who oversees more than $4 billion as chairman of New York-based Holland & Co. “Right now it looks like Pandit has been able to calm the seas and we may have a period where things are lined up for smooth sailing. Unless things change dramatically, it’s probably a chance for them to make some more money.”