UK hedge funds 'entering buying frenzy'

Date: Tuesday, February 16, 2010
Author: HedgeWeek

Lloyds is expected to head up a "buying frenzy" that has hit the UK markets, a source has reported.

Angus Rigby, chief executive officer at TD Waterhouse, reports that top trading figures rose by 53 per cent last week.

Key areas that experienced growth included house builders, following efforts by the Council of Mortgage Lenders to get the £300 billion mortgage funding gap onto the political agenda.

Both Taylor Wimpey and Barratt Developments ranked in the top ten trades, with Vodafone and Aviva also appearing in the list.

Mr Rigby stated: "Lloyds Banking Group spurred a hike in trading activity this week, with customer buys accounting for more than two-thirds (70 per cent) of the top ten trades."

This contrasts with recent assertions by City Index market analyst Nick Serff, who claimed that European hedge funds have remained jittery this month due to many hedge funds waiting for more economic information to be released.