DE Shaw Barclays Bank
DE Shaw Taks $159 Million Short Position on Barclays
DE Shaw is reportedly betting against one of England's biggest banks. DE Shaw, one of the world's largest hedge funds, is said to have taken a $159 million short position on Barclays Bank, expecting that the tougher regulatory and economic situation will eventually hurt the bank.
The hedge fund, which has $21bn (£13bn) in assets under management, disclosed that it had built a 0.26pc short position. The position is worth £97m after Barclays' shares closed down 4.4 at 306.6p on Monday.
Its decision to bet on a falling share price at one of the UK's leading banks could dent confidence in the financial services sector. Investors are already worried about the effects of tougher regulations on funding costs and future profitability.
Hedge funds on both sides of the Atlantic made considerable gains by betting against banks' share prices during the financial crisis and DE Shaw's move will raise fears that some again sense an opportunity.
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