Hedge fund bets nearly £1bn against UK banks

clock

Billionaire US hedge fund manager John Paulson has made a near £1bn bet against four British banking stocks.

The FSA’s short-selling ban has forced Paulson to disclose large positions in RBS, Lloyds TSB, Barclays and HBOS. Paulson’s $35bn hedge fund, which amassed stellar returns betting against sub-prime mortgages last year, was one of only a handful of vehicles to retain short positions past Friday's deadline. The Paulson & Co fund disclosed four UK bank shorts: 1.76% in Lloyds TSB 1.18% in Barclays 0.95% in HBOS 0.87% in Royal Bank of Scotland It is estimated the combined bets are worth in excess of £900m. In a statement released last night, Paulson & Co says it “empathise...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

US investment manager Nuveen to buy Schroders in £9.9bn deal

US investment manager Nuveen to buy Schroders in £9.9bn deal

Combined group will oversee almost $2.5trn of assets under management

Linus Uhlig
clock 12 February 2026 • 2 min read
UK DIY investment grew by more than £100bn in 2025

UK DIY investment grew by more than £100bn in 2025

According to data released by Boring Money

Patrick Brusnahan
clock 11 February 2026 • 2 min read
Darius McDermott: Think active for the decade ahead

Darius McDermott: Think active for the decade ahead

'There are reasons to be nervous about the largest companies in the index'

Darius McDermott
clock 11 February 2026 • 5 min read