Moore Capital Favoring Emerging Markets, Tech, Telecom and Financials

by: Todd Walker

Moore Capital shuffled up its portfolio’s allocations over the third quarter of 2009. The hedge fund manager increased its holdings most notably in the financial, basic materials, information technology, and consumer discretionary sectors.

Moore Capital’s highest exposure was to the Financials sector where it increased its holdings by approximately $226mm, bringing its total sector holdings to about $704mm, or 32% of its portfolio. As of 9/31/2009, its top financials holdings included:

  • Bank of America Corp (NYSE:BAC): $288.5mm / 17,050,000 shares, 0.2% held, Change: $-50.8mm / -3,000,000 shares
  • streetTRACKS Series Trust KBW Bk ETF (NYSEARCA:KBE): $96.8mm / 4,150,000 shares, 0.0% held, Change: $96.8mm / 4,150,000 shares change
  • Mastercard Inc (NYSE:MA): $71.8mm / 355,000 shares, 0.3% held, Change: $71.8mm / 355,000 shares
  • Assured Guaranty Ltd (NYSE:AGO): $57.3mm / 2,950,000 shares, 1.9% held, Change: $17.1mm / 880,000 shares
  • Citigroup Inc (NYSE:C): $50.8mm / 10,500,000 shares, 0.0% held, Change: $50.8mm / 10,500,000 shares

The firm also closed-out of some positions in the financials sector, including CIT Group (CITGQ), iShares Xinhua China ETF (NYSEARCA:FXI), Wells & Fargo Co (NYSE:WFC), JP Morgan Chase (NYSE:JPM), and Goldman Sachs Group Inc (NYSE:GS). Overall, the hedge fund manager’s sell-offs for these five companies totaled $26mm.

Moore’s most active sector was the Tech and Telecom sector, where it increased its exposure from only $3mm to over $433mm during the third quarter. The largest new positions include:

  • SPDR Technology Sector (NYSEARCA:XLK): $125.2mm / 6,000,000 shares, 0.0% held, Change: $125.2mm / 6,000,000 shares
  • Vimpel-Communications (ADR) (NASDAQ:VIP): $68.4mm / 3,655,400 shares, 1.8% held, Change: $68.4mm / 3,655,400 shares
  • Merrill Lynch Internet HOLDRs Trust (NYSE:HHH): $35.5mm / 700,000 shares, 0.0% held, Change: $35.5mm / 700,000 shares
  • America Movil S.A. de C.V. (ADR) (NYSE:AMX): $28.5mm / 650,000 shares, 0.0% held, Change: $28.5mm / 650,000 shares
  • China Mobile (Hong Kong) Limited (ADR) (NYSE:CHL): $26.5mm / 540,000 shares, 0.0% held, Change: $26.5mm / 540,000 shares

The hedge fund also made some broad market calls by purchasing large positions in a couple of ETFs: $140.54mm in the iShares MSCI Emerging Markets Income (NYSEARCA:EEM) and $38.9mm in the Standard & Poor's Depository Receipt Trust (NYSEARCA:SPY). Moore Capital’s star trader and emerging market specialist Greg Coffey, who was poached away from GLG Partners. last year, no doubt was behind the large EEM purchase.

Excluding the Financials, Technology, Telecom and ETF securities mentioned above, the firm's other top holdings included:

  • Barrick Gold Corp (NYSE:USA) (NYSE:ABX): $124.3mm / 3,280,000 shares, 0.4% held, Change: $124.3mm / 3,280,000 share
  • Philip Morris International Inc. (NYSE:PM): $90.2mm / 1,850,000 shares, 0.1% held, Change: $26.8mm / 550,000 shares
  • SPDR Energy Sector (NYSEARCA:XLE): $88.7mm / 1,645,200 shares, 0.0% held, Change: $39.5mm / 732,500 shares
  • General Electric Co (NYSE:GE): $49.3mm / 3,000,000 shares, 0.0% held, Change: $49.3mm / 3,000,000 shares
  • American Water Works Company Inc. (NYSE:AWK): $39.9mm / 2,000,000 shares, 1.3% held, Change: $39.9mm / 2,000,000 shares

Louis Bacon founded Moore in 1989. The firm manages a number of hedge funds including the Remington Investment Strategies and the Moore Global Fixed Income Funds. For more information on the hedge funds and portfolio managers mentioned in this article, please see HedgeTracker’s Complete Hedge Fund Directory.

Disclosure: Author holds position in JPM, SPY, AMX