A Bad Time to Bet Against Barclays Traders
Edward Bramson was unlucky that the pandemic transformed the fortunes of the Barclays investment bank. But he made strategic errors, too.
A fortunate turn of events.
Photo: Bloomberg
Edward Bramson, the activist investor who targeted Barclays Plc, has said that business isn’t a science. But his three-year attempt to force through change at the British bank didn’t show much art either, hence his capitulation on Friday. More skillful maneuvering is needed when you’re taking on a complex and heavily regulated finance firm.
Bramson’s Sherborne Investors Management LP has sold its entire 6% stake in Barclays. Financially this was a very bad bet. Sherborne lost about 15% on the wager, according to my Bloomberg News colleagues, even though it used equity derivatives to limit its losses.