Did Warren Buffet Save the Day for Bank Heavy Hedge Funds?

August 29th, 2011
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The poor August showing by many of the top hedge funds may have been due, in large part to their exposure to financial stocks which have been hit hard all year, but took a shellacking during the summer. As reported by Reuters, hedge funds such as John Paulson’s Advantage Plus, William Ackman’s Pershing Square Capital Management, and Leslie Ainslie’s Maverick Capital were all recording double digit declines through the first part of August due to their extensive holdings in bank stocks like Bank of America and Citigroup.

According to Reuters, it was only after Warren Buffet stepped in with his $5 billion vote of confidence in Bank of America did the declines began to level off. Funds, such as Paulson & Co's Advantage Plus, with heavy exposure to Bank of America may have seen the biggest turnaround; however, most financial stocks surged following Buffet’s investment which spread the recovery to other hedge funds.
For Detailed Investor Profiles on these Investors, click below:
Berkshire Hathaway (Warren Buffett)
Maverick Capital
Paulson & Co.
Pershing Square Capital Management
Related People: Andrew Hoine; Charles T. Munger; Charles Wyly; Evan Wyly; John Paulson; Lee S. Ainslie; Mena Gerowin*; Mike Barr; Nicholas Botta; Roy J. Katzovicz; Sam Wyly; Scott Ferguson*; Sheru Chowdhry; Stuart Merzer; Todd Combs; Warren E. Buffett; William 'Bill' Ackman
Related Entities: Berkshire Hathaway Finance Corp; Berkshire Hathaway Life Insurance; Berkshire Hathaway Reinsurance Group; Bill & Melinda Gates Foundation; GEICO; General Re; Leucadia Corporation (NYSE: LUK); Maverick Capital; Maverick Capital Long LP; Maverick Fund USA; Maverick Levered Partners; MidAmerican Energy Holdings; Paulson Advantage Master Ltd; Paulson Advantage Plus Master Ltd; Paulson Real Estate Recovery Fund; Paulson Recovery Fund; PCI; Pershing Square Capital; Pershing Square IV; Pershing Square LP; Tiger Management Corporation*
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Featured Reports

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