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It will take 'sharp lawyers' to get Barclays on Libor

Two fund managers specialising in financial companies have snapped up shares in Barclays, believing all the risks are priced in.

It will take 'sharp lawyers' to get Barclays on Libor

Guy de Blonay, manager of the Jupiter Financial Opportunities fund, and Kokkie Kooyman, manager of Sanlam Global Financials , have both bought into Barclays.

In a video interview with Frank Talbot, Kooyman reveals how he bought into Barclays in May and took profits the following month after a rally in the share price. Although aware of the risks he finds Barclays attractive as it trades on just 40% of book value. Click on the video below to hear what he has to say.

Meanwhile, Amy Williams has spoken to de Blonay, who took over Jupiter Financial Opportunities from star fund manager Philip Gibbs last year. He too believes the bank is hugely undervalued.

Barclays is too cheap to ignore

Jupiter's Guy de Blonay has been backing Barclays on the belief too much bad news has been priced into shares on the back of the Libor scandal, writes Amy Williams. 

De Blonay, who assumed control of the Jupiter Financial Opportunities fund from Philip Gibbs last year, has been buying shares in Barclays as he does not view the stock as an 'imminent risk'.   

‘A bounce will probably come as the shares are too undervalued in my view – people are already pricing in a lot of bad news,’ the manager said, speaking exclusively to Citywire.

On top of this, de Blonay said the shares in the bank are also depressed due to a vacuum within its senior management, and clarity on this would be another positive.

‘The CEO has left, the COO has left and the outgoing chairman has to still find a successor, but once we can narrow it down to someone who is willing to take on the job and put together a decent strategy for the bank, we will probably get some relief.

‘Remember when Lloyds got its new chief executive the shares rallied quite strongly on the day and the day after the announcement,’ de Blonay said.

However, the manager accepts that this is a problem which will not disappear overnight for banks as rigging was probably widespread across the sector.

He said: ‘In the short term we could have some relief in the fact that the market is being overly pessimistic on the prospect of future litigation simply because it is more likely than not that there was Libor manipulation, they (Barclays) were not alone and so the guilt has to be shared among several banks,' he said.

‘It’s going to be really difficult to prove so we have to talk about an alleged Libor manipulation. The consensus believe that it was a widespread practice but it still needs to be proven and I think even if you speculate on some settlement or number it won’t come out, it will take years to reach some sort of a settlement.’

7 comments so far. Why not have your say?

peter hart

Jul 09, 2012 at 17:38

Barclays shares. I think I will pass.

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neil miller via mobile

Jul 09, 2012 at 19:08

Trading on 40% of "book value". But if Barclays reported this "book value" itself it could mean anything..

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Jul 09, 2012 at 21:38

keep your money under the bed. The market players and the politicians have not yet finished with Barclays. Last time it was below 100P and was handed a lifeline by Qatar. yes they did profit handsomely.

But if it is being pushed by Fund Managers-- look out, they will not be using their money.And they will like everybody else be gambling.

Libor fallout, is not the only Banking issue to resolve.

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andrewva vaughan

Jul 09, 2012 at 22:12

i agree i think all the bad news is out they are a buy and forget for 5 years share

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Jul 10, 2012 at 11:31

Sharp lawyers? Wait till the FBI get hold of them. They'll be extradited like a shot if our own pathetic prosecutors don't act. Frankly, in the fraudster's shoes I'd rather be prosecuted here than spend my time dodging rapists in a US jail.

I won't buy Barclays' shares because they have become an unethical stock.

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James B. Johnson

Jul 10, 2012 at 14:10

Why will it take sharp lawyers?

Barclays has already been convicted and sentenced by three regulatory bodies!

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Jul 11, 2012 at 11:25

I think you'll find that was on a balance of probabilities (civil standard of proof), not beyond all reasonable doubt (criminal).

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