Lansdowne Dumps Prudential Short After Four Years

Apr 25 2013 | 10:59am ET

Lansdowne Partners is throwing in the towel on Prudential.

The hedge fund has been shorting the insurer's shares for more than four years. The bet has proven a disaster: Pru's shares have doubled since Lansdowne opened its position, during or before January 2009.

And thing's won't be getting any better for Lansdowne or worse for Pru, the hedge fund told clients this month. Lansdowne said it had determined that Pru shares are unlikely to fall "any time soon."

Lansdowne exited the position, which was valued at £259 million (US$360 million) last month, during the first quarter, Bloomberg News reports.

Lansdowne had been betting that Pru's Asian growth being unsustainable, and it hasn't abandoned that thesis. The hedge fund called the decision to close the short "doubly frustrating," but added, "we suspect our ability to judge the point at which evidence is accruing will be better done through a neutral position for the moment."

It is unclear how much the US$12.4 billion hedge fund lost on its investment.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...