Marshall Wace has taken a £155.6 million ($193 million) short position against NatWest Group Plc, the largest-ever disclosed short against the British bank since records began in 2012.
(Bloomberg) — Marshall Wace has taken a £155.6 million ($193 million) short position against NatWest Group Plc, the largest-ever disclosed short against the British bank since records began in 2012.
The latest disclosure to the UK’s Financial Conduct Authority shows the hedge fund increased its bet against the lender on March 23, bolstering its position from 0.51% as of March 10, representing about 0.61% of the taxpayer-backed bank.
Short sellers sell borrowed securities in hope to buy them back at lower prices and pocket the difference as profit. Marshall Wace’s strategies are typically market neutral meaning such positions are usually offset by long positions elsewhere.
The wider banking industry has been roiled by Credit Suisse Group AG’s rescue by UBS Group AG, the demise of Silicon Valley Bank and turmoil among regional American lenders.
Other short bets by the hedge fund include bets against British Airways owner International Consolidated Airlines Group SA and fashion house Burberry Group Plc, the filing shows.
Representatives for NatWest and Marshall Wace declined to comment .
The UK government remains NatWest’s biggest shareholder about 15 years after it rescued what was then Royal Bank of Scotland in a £45.5 billion bailout. The UK currently owns about 41.5% of the bank.
The Times of London reported the short position earlier.
–With assistance from Nishant Kumar.
(Adds other short bets by Marshall Wace to fourth paragraph)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.