Tiger Global Management, New York-Based Hedge Fund Reportedly Dumps Its Entire Stake in Barclays

  • Feb 19, 2019 GMT
  • Team Kalkine
Tiger Global Management, New York-Based Hedge Fund Reportedly Dumps Its Entire Stake in Barclays

Tiger Global Management, a United States-based hedge fund has dumped its entire stake in the Barclays Bank, according to report floated by many media houses on 17th February’19. It was one of the top-10 stakeholders in the Barclays bank, and earlier it has a 2.5 per cent stake in the company.

Although this hedge fund started cutting its stake in the British bank since last summer before it dumped the entire stake this year, the FT reported this news on Sunday.

Barclays is facing a tough time as one of the activist investor Edward Bramson forcing his strategy on the board of Barclays. Also, the exit of Tiger Global Management from Barclays could be a blow to the British bank CEO Jess Staley, as Tiger was a supporter of Jess’s strategy to reenergized Barclay's US investment bank, a plan that has been widely condemned by Edward Bramson.

The exit of a hedge fund from Barclays is likely to invoke pressure on the senior management from activist Edward Bramson who has been forcing Jes Staley to get rid of the underperforming Investment Banking (IB) division.

As per Financial Times, Tiger Global invested around $1 bn in the Barclays bank in 2017 but began slashing its stake since mid of 2018.

Top 10 Funds - Shareholders Report (As on 31st December 2018)

(Source: TR)

Barclays Plc (BARC.L) Profile

Barclays PLC (Barclays) is a global financial services provider offering personal and business banking, wholesale and commercial banking, and private and investment banking solutions to individuals, SMEs, corporates, and high-net-worth clients. It offers deposits and accounts, cards, loans, and investment solutions. The bank also provides services such as foreign exchange, transactional lending, mobile banking, premier banking, international banking, and online banking. Barclays caters to retail customers, small to medium-sized enterprises, and large corporates; headquartered in London, the UK. The bank operates across Europe, Asia, Africa, the Middle East, and the Americas.

Stock Performance

(Source: LSE)

Stock Information

Barclay's market capitalisation of GBP 27.03 billion, ranks it among the large-cap stocks.  During the last 12 months, the stock has reached a 52w high of GBp 220.18 and a 52w low of GBp144.99. On 18th February 2019, Barclays share closed at GBp 158.12, down by 0.87 per cent against its previous day closing price. At the closing price, the stock was trading 28.19 per cent lower against its 52w high and 9.05 per cent higher against its 52w low. Also, stock's 5days average traded volume was 38.03 per cent lower than its 30 days average traded volume at the London bourses. In last one year, the stock has delivered negative returns of 20.96 per cent. On the valuation front, the stock was trading at a trailing twelve months PE multiple of 7.8x as compared to the industry median of 9.5x. The company’s stock beta was 0.73, reflecting relatively less volatility as compared to the benchmark index.

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