Eton Park, Arrowstreet Acquire BofA (BAC) Stock Ahead Of Share Rally

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February 15, 2012

New York, February 15 (FinanceEnquiry.com) - Immediately before a rally of Bank of America (NYSE: BAC) shares, that surged 44 percent, Eton Park Capital Management LP and Arrowstreet Capital LP bought the bank’s shares in the fourth quarter. According to a filing with the US Securities and Exchange Commission on Tuesday, 20 million shares of the Charlotte, North Carolina-based lender were bought by Eton Park, the hedge fund run by Eric Mindich, in the period for $111 million. Boston-based Arrowstreet bought 14.4 million shares, worth $79.8 million.

In the quarter, billionaire John Paulson’s $24 billion hedge fund, Paulson & Co., sold 64.3 million Bank of America shares worth $394 million. Paulson’s Advantage Plus Fund suffered a 51 percent loss in 2011, due to its investments in Bank of America and Citigroup Inc that proved to be counter-productive. In 2011, BAC suffered a 58 percent decline, which was its worst performance in the Dow Jones Industrial Average. The second-biggest U.S. lender by assets is still recovering from this decline and closed at $7.98 in New York trading Tuesday. During the fourth quarter, Bank of America was the worst performer in the 24-company KBW Bank Index, falling 9.2 percent. Citigroup was the fourth-worst by going up 2.7 percent, whereas the Index went up 11 percent.

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