Funds Hub

Money managers under the microscope

Insurance policy

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Shorting UK banks, it seems, is so last year.

Having profited from the implosion of the sector in 2008, many funds believe prices have fallen far enough, and in some cases are actually looking good value.

rtrp8722Outspoken star fund manager Crispin Odey this week revealed he’s now buying UKĀ banks, having made money shorting them last year.

Instead, hedge funds have another sector in their crosshairs – insurers.

Many believe the sector will have to raise more capital or cut dividends. Figures from research group Data Explorers indicate increased shorting activity in the sector this month, albeit from a low base.

Hedge fund firm Lansdowne Partners has recently disclosed shorts in Legal & General, Aviva, Prudential and Old Mutual, while anecdotal evidence suggests others are taking similar bets.

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