Qube Hedge Fund Takes Record Short Position Against Barclays Amid Stock Surge

Qube Research & Technologies, a London-based quantitative hedge fund that spun out of Credit Suisse in 2018, has taken the largest short position ever against Barclays, representing 0.73% of the bank’s total shares, according to a report by The Times.

Despite a recent rebound in Barclays’ stock following Chief Executive CS Venkatakrishnan's announcement of a new turnaround plan, Qube appears to be betting that the rally will be short-lived. Venkatakrishnan, under pressure to increase the bank’s market value and align it with its European and US counterparts, unveiled a plan on 20 February to return at least £10bn to shareholders over three years, reduce costs, and increase annual revenues to £30bn by 2026.

Following the announcement, Barclays’ shares climbed by 20%, reaching 177.5p, the highest level seen in a year. However, Qube has continued to grow its short position, even as Barclays’ stock price increased. This escalation was noted after Qube’s position surpassed the 0.5% threshold, which requires disclosure to the Financial Conduct Authority (FCA), on 27 February.

A spokesperson for Qube commented that the firm’s trading decisions are not based on any specific opinion about Barclays, nor do they reflect a "fundamental view" of the bank. Instead, the firm emphasised that its strategy is driven by its algorithms rather than any particular stance on the company.