The American hedge fund Tiger Global, one of Barclays's largest investors, has sold its entire stake to the bank. So the fund hit the bank's attempt to change its strategy completely.
The New York-based Tiger Fund was one of the staunch advocates of Jes Staley's plan to revive the shares of the investment bank. However, things have changed, and the fund has started to shrink its position in the bank from last summer until the zeroing of positions early this year.
The emergence of Tiger poses a challenge to the survival of the bank. The current board has been trying to prevent Edward Bramson, an investor-activist, from imposing his position on the management and starting a change in the overall strategy of the bank, which would have cost cuts, personnel cuts, and other negative events to shrink investment bank. The accumulation of fund positions was considered as support for Staley, which successfully defended the bank in the face of the attacks by Bramson.
Tiger Global began building a position at Barclays with the presumption that the significant presence of Wall Street Bank will attract even more foreign investors because of the tax relief imposed by Donald Trump as well as the rise in the key interest rate.
For the time being, however, Tiger and Barclays refuse to comment, but the road ahead of Bramson seems to be pure to trigger plans for a complete change in the bank's strategy.
Source: Financial Times
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