According to Bloomberg, Lansdowne Partners Ltd., a London- based hedge fund that manages about $14 billion, sold its entire stake in Goldman Sachs Group Inc. (GS) in the first three months of the year, while buying Morgan Stanley.
Lansdowne sold 4.9 million shares of New York-based Goldman Sachs between January and March, the hedge fund disclosed in a May 16 filing with the U.S. Securities and Exchange Commission. Lansdowne purchased 3.1 million shares of Morgan Stanley during the same period, according to the filing.
Goldman Sachs, Morgan Stanley and other financial companies face more regulation after U.S. lawmakers approved legislation last year that restricts banks from making risky bets with their own capital. As policy makers increase oversight, Morgan Stanley is pursuing a business model that relies less on trading to make money, said Douglas G. Ciocca, chief executive officer of Kavar Capital Partners LLC.
“If the world keeps deleveraging and de-risking, then Morgan Stanley is much better positioned,” said Ciocca, whose Leawood, Kansas-based company owns shares of Morgan Stanley and Goldman Sachs. Morgan Stanley is also “much more attractive than Goldman on a book-value basis,” he said…
Find out more at http://www.bloomberg.com/news/2011-08-01/lansdowne-hedge-fund-sells-goldman-sachs-while-purchasing-morgan-stanley.html
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