(Reuters) Two leading hedge funds which made big bets on Deutsche Bank shares falling are now reducing their “short” positions, in a sign of confidence in the stability of the lender.Germany’s biggest bank has been in turmoil since mid-September when it said U.S. authorities were demanding up to $14 billion to settle claims that it missold U.S. mortgage-backed securities before the financial crisis.
Hedge funds can take bets against companies – known as short positions – by borrowing the stock in the hope it will lose value and they can repay the loan for less, pocketing the difference.
