market folly

Louis Bacon's hedge fund Moore Capital have reduced their long position in financial advisor Collins Stewart (LON: CLST). Moore's reduction below a 3% ownership stake in the company triggered a regulatory filing with the London Stock Exchange.

We cannot be sure if the hedge fund still owns shares or not, as they are not required to report a position once they breach that 3% threshold to the downside.

Moore could have sold completely out of the position, or they could still hold a long stake in CLST below the 3% level. Unfortunately, this is one of the pitfalls of the UK regulatory disclosure system. In other activity, we also noted Moore Capital reduced its Mecom position.

From Google Finance - "Collins Stewart plc is a United Kingdom-based company. It is an independent financial advisory group servicing corporates, financial institution, private equity houses, private clients, governments and quasi-governmental bodies. The Company's services covers institutional stockbroking, United Kingdom, European and United States research, corporate broking, corporate finance, debt capital markets, restructuring and debt advisory services and private client wealth management."

Moore Capital's flagship Moore Global fund was up 3% last year as noted in our compilation of 2010 hedge fund returns. Its macro managers fund, on the other hand, returned 105%.