Hedge funds that base investment decisions on economic trends are unwinding bets against European stocks at the fastest pace in three years, speculating policy makers will step up the fight against the debt crisis.
Barclays Plc saved itself 25.5 million pounds ($40 million) in fines by moving first to settle a probe over the rigging of global interest rates. In return, it has lost three top executives, $5 billion of market value and sparked a government inquiry.
Xstrata Plc investors say a potential 250 million-pound ($385 million) payout to 73 managers and executives of the mining company after its takeover by Glencore International Plc is “insensitive” and “unacceptable.”
Bob Diamond, who stepped down as chief executive officer of Barclays Plc today, aggravated U.K. regulators by taking an aggressive stance over the manipulation of interest rates, said Laurence D. Fink, head of BlackRock Inc.
Emerging-market stocks will outperform those of developed nations next year as monetary policy becomes more “accommodative,” according to Fidelity Worldwide Investment. Citigroup Inc. said developing shares may advance about 28 percent by the end of 2012.
Gartmore Group Ltd., the U.K. money manager that first sold shares in December, fell the most in seven months in London after the firm said it’s weighing a sale or merger, and fund manager Roger Guy said he will retire.
Gartmore Group Ltd. , the U.K. fund manager founded by the Cayzer shipping dynasty, has been sold five times over the past 20 years. Its sixth sale, being run by Goldman Sachs Group Inc., will take place without its biggest asset and liability -- star fund manager Roger Guy .