US hedge funds Oaktree Capital and Centerbridge Partners have extended their grip on recovering surf and skate wear retailer Billabong , snapping up an extra 2.9 per cent as confidence in the turnaround intensifies.

Last week Morgan Stanley sold a 20 million tranche of stock at 68¢ per share, the highest price for seven months. The $13.6 million trade was ­initially viewed as a sell-down by another US hedge fund, Coastal Capital, which dipped below substantial share holder status recently. However, the firm denied it had offloaded any more shares. Coastal’s managing director Todd Plutsky told Fairfax Media he was pleased at “the current progress of the ­turnaround plan".