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DE Shaw Not Really Feeling Barclays

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The hedge fund has taken a £100m short position in the bank.

[DES], 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...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. Analysts and investors remain split on the bank's future prospects. Some have expressed concern over the performance of Barclays Capital, the investment bank, and the impact of the Basel III rules on the group's future funding costs.

And on a slightly more optimistic note.

UBS and Merrill Lynch both issued upbeat notes last week in which they said Barclays could be moving towards a restructuring. UBS said Barclays could sell off assets and restructure to avoid a profit fall in the wake of the introduction of Basel III.

[Telegraph via BI]