British savers piled into UK stock market funds at the fastest rate for more than four years following the Conservative Party’s overwhelming election victory as they bet on a dealmaking and investment spree. Investors poured a net total of £1bn into UK-focused funds in December, more than double the previous largest monthly inflow in July 2015, according to Calastone which processes cash transfers. Investment in UK-focused funds began to pick up in October and November once the general election was called and intensified as Boris Johnson’s Tories pulled ahead in the polls.
Hedge fund tycoon Crispin Odey, the outspoken Brexiteer accused of betting against Britain, saw his main fund slump in 2019 after his bets failed to pay off. The investment grandee’s flagship European fund fell 10.1%, according to performance data from the company which showed that his other funds also fell for the year – losses he blames partly on turbulence in Argentina. Argentina’s currency, the peso, plunged 20% in August following an election and potential change of government which sent shock waves through markets.
Premier Oil (PMO) faces a legal showdown with a hedge fund fighting against a deal to snap up drilling fields in the North Sea. The company agreed to buy the fields from BP (BP.) for $625m (£474m) on Tuesday at the same time as it unveiled a $2.9bn refinancing plan. But Premier faces stiff resistance from Hong Kong-based Asia Research and Capital Management (ARCM), its biggest creditor, which has mounted an assault on Premier as it races to secure fresh funding. The hedge fund has built a £130m bet against Premier’s shares – believed to be one of the biggest short positions in UK history – while buying more of its debt.
Burford Capital (BUR) has pledged to forge ahead with a US listing as it fights to rehabilitate itself after a hedge fund attack wiped more than £1.5bn off shares last year. Guernsey-registered Burford also announced a management shake-up on Tuesday and vowed to publish more details on bosses’ pay. The company is seeking to respond after an assault by Californian short-seller Muddy Waters in August, which accused it of overlooking major financial problems. Muddy Waters claimed that Burford was “a poor business masquerading as a great one” and criticised its transparency, governance and accounting practices.
Cautious shoppers, heavy discounting and a decision to shun Black Friday triggered a fall in sales at Morrison (Wm) Supermarkets (MRW), bosses have said. David Potts warned that trading had been “unusually challenging” as the chain post a 1.7% fall in sales for the 22 weeks to Jan 5. Separately, the retailer emerged as the worst-performing supermarket for the 12 weeks to Dec 29, a crucial period for the nation’s grocers, research firm Kantar said. Sales were 2.9% lower than a year earlier.
