A hedge fund led by the owner of GB News has made millions from shorting NatWest stock as the bank’s shares fell in the wake of the controversy over Nigel Farage’s bank account.
Sir Paul Marshall’s hedge fund Marshall Wace has a 0.59% short position in NatWest, according to regulatory filings first unearthed by the Telegraph. The fund has held a short position against NatWest since the Spring, and has pared back its bets slightly in recent months.
NatWest shares have lost 8.4% of their value in the past week as the company has come under fire for how it handled Nigel Farage’s account with exclusive bank Coutts. That represents close to £2 billion in market capitalisation, meaning Marshall Wace has gained around £11.7 million in that time period by betting against the bank.
Those gains will only exist on paper until Marshall Wace cashed out of its short position, though. They are also a drop in the ocean for Marshall Wace, which manages almost £50 billion worth of assets.
The fall in share price was mostly due to the exit of Dame Alison Rose as CEO, after she revealed that she had leaked information that led to an inaccurate BBC report on why Coutts had closed Farage’s account.
Farage presents a show on Marshall’s GB News. On his show on Wednesday, he called for the Government, which owns 38.6% of NatWest, “to appoint a new temporary board to take control of this bank.”
Marshall has an estimated net worth of £680 million, and is widely seen as a likely bidder for the Telegraph, which has also been a major supporter of Farage and critic of NatWest leadership during the controversy.
According to the Telegraph, the decision to bet against NatWest was likely made by a computer based on analysts’ reports, rather than being linked to any association with Farage.
