Hedge funds snap up 60% of bargain RBS shares

Speculative investors such as hedge funds stocked up on as much as 60% of the shares released in yesterday's RBS sale as they took advantage of the bargain price offered by the government.

UK Financial Investments (UKFI), the body that holds the stake in RBS on behalf of the government, confirmed that 40% of the shares were bought by long-term investors, such as pension funds. The remaining 60% of the 630m shares released were bought by speculative traders, the organisation said.  It is expected to be called to give evidence to the Treasury on the matter later in the year, the Guardian reports. Yesterday the government initiated its disposal of shares in the bank, selling 5.4% of RBS at 330p per share, despite the shares closing at 337.6p the day before the sale. ...