Thursday, August 2, 2012

The Facebook Flip: Funds Exit Early



It wasn't supposed to end like this, the WSJ writes..  Fidelity Investments was an early buyer of Facebook Inc. FB -3.98% shares. In the spring of 2011, two dozen of its funds bought more than $200 million worth of the company's private stock. Then, when Facebook went public in May, many of those funds and other Fidelity funds loaded up on publicly traded shares.

Now, many of the giant Boston-based company's fund managers are shrinking their stakes.  Twenty-one Fidelity funds sold more than 1.9 million public Facebook shares combined in June, with 16 of them selling more than a quarter of their stakes in the company, according to investment-research firm Morningstar Inc. Private shares can't be traded until later this year.

It is unclear whether the Fidelity funds made or lost money on the Facebook shares...

More?  Go to http://online.wsj.com/article/SB10000872396390444130304577561242527014990.html?mod=WSJ_hpp_LEFTTopStories

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