Hedge fund tycoon Crispin Odey cuts bet against Metro Bank

Hedge fund tycoon Crispin Odey has slashed his short position in Metro Bank, but is still no fan.

The bank has been targeted by Odey for short-selling – betting the share price will fall – for years, but recent filings show he has halved his short position since December.

Odey told The Mail on Sunday that Metro Bank now holds a relatively ‘unimportant’ position in his portfolio as its shares lack liquidity and the price is low.

His holding now amounts to about 2 per cent of the shares available and is worth almost £4 million, meaning he is still the bank’s largest short-seller.

Metro Bank has seen its share price plunge 97 per cent over the past five years. Its market value is now just £170 million. It has also posted losses totalling £627 million since 2020. Odey predicts that the bank could soon be taken over by a rival.

Cutting back: Crispin Odey said that Metro Bank now holds a relatively ‘unimportant’ position in his portfolio as its shares lack liquidity and the price is low

Metro Bank recently drew up plans for an orderly wind-down if it were to fail, bringing it in line with Britain’s big lenders.

It is one of the most thinly capitalised of the ‘challenger’ and specialist banks, consultants EY recently found.

Founded by US entrepreneur Vernon Hill in 2010, it became the first new high street bank in over a century, investing heavily in its branches.

A Metro Bank spokesman said it is ‘profitable, well-capitalised and highly-liquid, with a loan book that is performing well’.