LONDON (Reuters) - Hedge funds are split on how to position billions of dollars in bets they have taken on Italian banks as the country’s political tumult takes its toll on bonds, shares and the euro. Although hedge funds have a combined 1 billion euro ($1.2 billion) bet against Italy’s top 10 banks, these so-called ‘shorts’ have been rising and falling since the election in March which led to the political impasse.