Hedge fund Toscafund boosted its stake in housebuilders Redrow (9.7% to 16.6%) and Taylor Wimpey (5% to 10%) this week. The firm is led by Martin Hughes, a City mogul worth £300m.

So what’s he up to? The company won’t say, but he obviously sees long-term value in the sector, despite the recent turbulence. Some doubt that it will mount full-blown takeover bids, but the Redrow stake was high enough to raise eyebrows in the Square Mile.

Share prices, too. Redrow jumped 9% to 315p on the news and Taylor Wimpey was up 6% to 187p in early trading last Friday. By this week Redrow was at 343p, which means our fictional £100 stake is worth £115. It was the same price for Taylor Wimpey.

Elsewhere Barratt was worth £107, Bovis Homes £110 and Persimmon £108. Could this be the start of something beautiful?

Elsewhere, Costain takeover fever has abated: its 20% rise to 26p over March has come to a halt.