Hedge fund discloses £47m bet against Pru

One of the UK’s best known hedge fund groups has taken a £47m bet against Prudential in the lead-up to its proposed $35.5bn acquisition of AIA.

Lansdowne Partners, which has $16bn under management, revealed a 0.32% short position in the insurer yesterday, believed to first short-seller to reveal a disclosable short in Pru since the acquisition was announced, The Times reports.

Pru is next month set to vote on a $20bn capital raising to finance the AIA deal, with further details set to be unveiled next week.

Lansdowne has previously had short positions in Prudential, but ceased to have a disclosable position in December.

The hedge group has been active during the financial crisis, profiting from share price falls at Northern Rock and Barclays and later buying into bank stock as the recovery began. After the Government, it is one of the largest investors in Lloyds.