BUZZ-View from the buyside: S&W is closing Lloyds 'Labour hedge'

** Smith & Williamson fund manager Mark Swain is removing short position in Lloyds Banking Group as UK banks surge on election win for Conservatives

** Swain, a co-manager of firm's long/short Enterprise fund, put short on ahead of election amid widespread fears of a break-up of biggest banks & more hikes in a tax on their assets

** Labour had said it would increase bank levy, based on banks' assets, by 800 mln pounds if it won election

** Lloyds up 5.4 pct at levels last seen Jan 2014 (having earlier hit highest level since 2008 when govt began a bail-out that put 41 pct of bank in state hands)

** UK banking sector, up 2.7 pct, poised for biggest one-day rise since October & closing in on >1-yr highs (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)