Hedge funds come to Merrill’s rescue

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Hedge funds run by Eric Mindich and Jack DiMaio have purchased some Merrill Lynch stock that the firm sold to stabilize it capital reserves following losses sustained as a result of the declining value of the bank’s mortgage holdings.

Merrill issued the stock in private placements, raising $12.8 billion in two sales held during December and January. DiMaio Ahmad Capital owned 1.04 million of Merrill’s common shares, according to a filing by the bank this week, up from zero shares according to DiMaio’s most recent 13F filing.

Eton Park Capital Management held 8.86 million shares according to the