Hedge funds target UK financial stocks

Hedge funds have raised their bets against financial stocks in the UK, US and Germany as a short-selling ban in four eurozone countries prompted them to focus elsewhere.

Figures from Data Explorers show stock out on loan – a strong indicator of shorting interest – for financial stocks in the UK, US and Germany has risen strongly since 12 August when Belgium, France, Italy and Spain imposed shorting bans on certain stocks.