Wells Fargo & Co (NYSE:WFC)
– Option Type: Put (Bearish)
– Shares Covered Under The Options Held By Moore Capital Management (as of September 30): 500,000
– Value of the Holding (as of September 30): $22.14 Million
Moving on, the Put Options position that Moore Capital Management built in Wells Fargo & Co (NYSE:WFC) was a new addition to its portfolio during the third quarter. Although the position suggests that the fund was extremely bearish on the company in the short-term, shares of Wells Fargo & Co (NYSE:WFC) have performed extremely well in the current quarter, owing to Mr. Trump’s unexpected victory. Nevertheless, the stock of the banking giant is still trading in the red for the year, down by 5.22%. On November 14, Wells Fargo revealed that its brokerage arm is getting into the robo advisory business by partnering with SigFig Wealth Management LLC. Despite the lackluster performance of the stock this year, many analysts consider Wells Fargo to be one of the safest bets for income investors, as it sports a forward yield of almost 3%.
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Citigroup Inc (NYSE:C)
– Option Type: Call (Bullish)
– Shares Covered Under The Options Held By Moore Capital Management (as of September 30): 1 Million
– Value of the Holding (as of September 30): $47.23 Million
Moore Capital Management initiated a long position in Citigroup Inc (NYSE:C) during the second quarter, buying slightly over 1.5 million shares of the company. However, during the third quarter the fund sold that entire stake and built a new bullish position in Citigroup Inc (NYSE:C) via Call Options. Like Wells Fargo, Citigroup’s stock has also benefited immensely from Mr. Trump’s victory and is up by over 15% in the current quarter. The bank holding company is expected to declare its third quarter results by the end of this week and analysts’ are forecasting that will report EPS of $1.10 on revenue of $17.23 billion. For the same quarter of last year, Citigroup had reported EPS of $1.06 on revenue of $18.64 billion.
iShares MSCI Brazil Index (ETF) (NYSEARCA:EWZ)
– Option Type: Call (Bullish)
– Shares Covered Under The Options Held By Moore Capital Management (as of September 30): 8.51 Million
– Value of the Holding (as of September 30): $287.04 Million
The iShares MSCI Brazil Index (ETF) (NYSEARCA:EWZ) Call Options position held by Moore Capital Management was the fund’s second-largest holding at the end of September. Interestingly, even though the fund increased its Call Options position in the ETF by 13% during the period, it reduced its long position in the ETF by 50% to 1.74 million shares. The iShares MSCI Brazil Index (ETF) (NYSEARCA:EWZ) tracks and seeks to replicate the investment results of an index composed of Brazilian equities. Amid intense political turmoil that led to the impeachment of ex-President Dilma Rousseff in August, Brazilian equities have performed extremely well in 2016. This can be gauged by the performance of The Bovespa Index, which is up by almost 40% year-to-date. However, the iShares MSCI Brazil Index (ETF) has even outperformed the Bovespa, as it’s currently trading 58.08% in the green year-to-date.
Disclosure: None
