The use of a horizontal arrangement of wall shunts is proposed in this paper as a cost-effective way to reduce the stray losses in power transformers. This paper compares the performance of horizontal wall shunts with the available alternative (vertical shunts). A 3-D finite-element analysis (FEA) is used for the calculation of stray losses in tank walls, and other structural parts. A novel hybrid numerical/analytical method is proposed for the calculation of stray losses inside the magnetic shunts. The proposed method is based on the double Fourier series expansions of the magnetic field distribution at the surface of the shunts, which is determined using 3-D FEA. A 200 MVA power transformer is investigated as a case study where the stray losses are calculated with and without the vertical and horizontal shunts. A parametric FEA is carried out to find the optimal placement of the horizontal shunts on the tank walls. Results show that the proposed horizontal magnetic shunts arrangement are as effective as the conventional vertical shunts in reducing the stray losses while reducing the weight of the shields, therefore providing a cost-effective method for magnetic shielding of the transformer tank walls.