Hedge funds set to bank millions by short selling during London share slump

Markit data shows that the value of the short positions hedge funds have taken, effecting betting that FTSE 100 share would fall, is 17.8bn

Hedge funds are set to bank tens of millions of pounds from the slump in share prices in London, having bet almost 18bn that the FTSE 100 would fall.

The funds making the bets include Lansdowne Partners, which is run by George Osborne's best man, Peter Davies, and Odey Asset Management, which is led by Crispin Odey - who made millions by predicting the credit crisis and earlier this year said the world was heading for a downturn "likely to be remembered in 100 years".