Seven hedge funds bet millions on Irish banks falling

SEVEN INTERNATIONAL hedge funds have bet hundreds of millions of euro that Irish bank stocks will continue to fall.

Five US and two London-based funds have disclosed their short positions.
US-based hedge fund Tiger Global Management holds the largest overall position against Irish banks, while London-based Landsdowne Partners holds the largest single short position of 1.63 per cent of Anglo Irish Bank shares.

Using yesterday's closing prices, the seven funds hold positions worth €279 million in the four quoted Irish banks.
Cumulatively, they have short-sold 4.56 per cent of Anglo Irish Bank stock, 2.25 per cent of Bank of Ireland and 0.88 per cent of both Allied Irish Bank and Irish Life & Permanent.

Although it is normal stock market practice, since last Friday short-selling of the four Irish publicly quoted banks has been banned by the Irish Financial Services Regulatory Authority. While the regulator banned investors from taking new short positions, existing positions can be maintained, reduced or closed.

By maintaining their positions, the hedge funds are betting that Irish bank stocks, already at record lows, are set to fall further.
[link to www.irishtimes.com]