December 9, 2023

Hedge fund tycoon Crispin Odey cut his short position in Metro Bank but still isn’t a fan.

The bank has been a short target for Odie – a bet on a falling share price – for years, but recent documents show it has halved its short position since December.

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Oday told The Mail on Sunday that Metro Bank now occupies a relatively “minor” position in his portfolio as its shares lack liquidity and are priced low.

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Cut: Crispin Audie said Metro Bank now occupies a relatively “minor” position in his portfolio as its stock lacks liquidity and is priced low.

He now stands at about 2 per cent of the available shares and is worth almost £4m, which means he is still the biggest short in the bank.

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Over the past five years, the share price of Metro Bank has fallen by 97%. Now its market value is only 170 million pounds. It has also reported losses totaling £627m since 2020. Odey predicts that the bank may soon be taken over by a competitor.

Metro Bank has recently put in place an orderly liquidation plan in the event of its bankruptcy, bringing it in line with major UK lenders.

As EY consultants recently found out, this is one of the most undercapitalized challenger and specialized banks.

Founded by American entrepreneur Vernon Hill in 2010, it was the first major new bank in over a century to invest heavily in its branches.

A spokesman for Metro Bank said it was “a profitable, well-capitalized and highly liquid bank with a good credit history.”

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