Hedge funds come to Merrill’s rescue


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