Barclays boosted by a $1billion bet on its boss
was given a boost after it emerged that an American hedge fund had bought a $1bn stake in the business.
The bank, which was one of the worst performing stocks in its sector last year, powered up the bluechip index amid reports Tiger Global has built up a stake.
It is understood the US hedge fund, which was founded by Chase Coleman III in 2001, bought most of its position in November, which saw the bank’s shares hit a 52week low of less than 180p.
It now holds a 2.5pc stake, making it a top ten investor.
Its investment comes as Barclays embarks on a restructuring programme as it seeks to win back the confidence of investors.
Barclays was one of the worst performing banks in 2017, with its shares falling more than 13pc.
It is also facing a potential fine in the US for mis-selling securities and a criminal probe in the UK over its 2008 fundraising in Qatar.
Tiger’s involvement, therefore, suggests it is confident Barclays boss Jes Staley can revive the bank’s fortunes. Staley has shifted gears at the bank to focus on its US investment banking and UK consumer banking divisions.
The strategy has seen it sell the majority of its business in Africa and all of its retail operations in France and Italy.
But there is also concern about Staley’s future at the bank, as he is under investigation by regulators over his attempts to unmask an alleged whistleblower.
Tiger’s involvement appears to back Staley’s view that the bank is undervalued, as it trades below the book value of its assets at 260p per share.
The bank will benefit from President Trump’s corporate tax cuts and likely interest rate rises. Tiger’s vote of confidence sent shares in Barclays flying, finishing up 4.3pc, or 8.7p, to 209.2p.
The FTsE 100 finished down 0.20pc, or 15.35 points to 7715.44 while the FTsE 250 closed up 0.01pc, or 1.85 points at 20,655.17. AIM-listed learning Technologies surged after revealing its sales and profits for the full year would nearly double.
The company, which provides learning services for businesses, said its sales for 2017 will be at least £51.8m, compared to £28.3m the year before, thanks to key contract wins with KPMG and Jaguar Land Rover.
Earnings are expected to be at least £14m, compared to £7m in 2016. Shares rocketed 12.3pc, or 9.2p, to 84p as a result. Also up was hospital operator
NMc Health which jumped after snapping up stakes in two rival firms. The company, which was the best performing stock on the blue- chip index last year, rose 2.4pc, or 80p, to 3360p after acquiring a 70pc stake in cosmetic surgery firm Cosmesurge and an 80pc stake in Riyadh-based Al Salam.
It bought the outstanding shares in Fakih IVF and As Salama hospital earlier this month.
NMC is the leading private sector healthcare operator in the United Arab Emirates – but is rapidly expanding its business to the wider Gulf. Meanwhile five-a-side operator
Goals soccer centres fell 6.4pc, or 5p, to 73p after posting a fall in sales and warning on it profits.
The firm said sales across its sites open for more than a year had fallen 0.5pc in 2017 and profits would come in at the lower end of expectations.
Goals has invested heavily into its sites this past year, but said its locations that have yet to receive investment have continued to perform poorly.
Little-known small cap Stapleton Capital has changed its name to Blockchain Worldwide after identifying a number of socalled ‘ blockchain’ technology investment opportunities. It finished up 39.1pc, or 2.25p, to 8p.