Kyle Bass Takes the Flip Side of John Paulson's Trade?

Earlier today I wrote about Kyle Bass going long on Citi and Bank of America stock.

Bass Kyle
Bass Kyle

It would seem that Mr. Bass is taking the opposite side of John Paulson's trade.

Paulson, long known to have been bullish on the financial sector, seems to be paring back some of his positions – with special notice to Citi and Bank of America, according to a New York Times DealBook post:

"The hedge fund manager’s firm, Paulson & Company, disclosed in a regulatory filing on Monday that it had cut its holdings in several major firms, notably Bank of America and Citigroup."

The big difference of course between Bass and Paulson? The size of their positions.

Again, from DealBook:

"As of the end of the third quarter, Mr. Paulson had reduced his stake in Bank of America by about 30 million shares, to 137.8 million shares. And he cut his holdings in Citigroup by about 82.7 million shares, to 424 million shares."

So even after Paulson reduced his position in Bank of America, his stake is still about 137 times larger than Bass's. In Citigroup, after reducing his holdings, Paulson's position remains about 106 times the size of the position held by Mr. Bass.


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