Billionaire investor Joseph Lewis continued to take advantage of Bear Stearns’ swooning stock price, adding to his position to become the investment bank’s largest shareholder.
According to documents filed yesterday with the Securities and Exchange Commission, Lewis’ investment funds added 1.8 million shares over the past week, raising his stake in Bear to almost 9.6 percent.
Lewis previously owned 8 percent of Bear, putting him right behind the ownership stake of Dallas money manager Barrow Hanley Mewhinney & Strauss.
In August, Lewis disclosed that he owned a 7 percent stake in the investment bank.
Lewis’ interest in Bear has come as the firm and CEO Jimmy Cayne try to weather a subprime mortgage mess that has already claimed two of Bear’s hedge funds and led to billions in write-downs.
Lewis, who has insisted that he is a passive investor and not seeking changes in Bear’s leadership or business model, has proven to be a man of patience, at least in the short term.
With Bear’s stock rising 49 cents yesterday to close at $89.29, Lewis’ stake is down between $15 million and $20 million, based on $100, $105 and $110 option exercise prices, according to the filings. He has spent just over $1.1 billion to build the position.
The stake in the investment bank marks the biggest equity position for the reclusive Bahamas-based money manager
whose background is in trading currencies and operating restaurants and tourist shops across Europe..