Some Hedge Funds Clean Up
After Brexit Vote
Two London money managers took different views on the
referendum, but both wound up making money By Rob Copeland, Gregory
Zuckerman and Laurence Fletcher, 6/25/16 WSJ
In the hours after Britain’s surprise
vote to leave the European Union, chatter on Wall Street and beyond shifted to
who made or lost fortunes on the outcome.
Two of the early beneficiaries were
London hedge-fund chieftains who took different views on the vote, but both
wound up making money.
David Harding, the billionaire founder of Winton
Capital Management, donated millions to a group that hoped to persuade Britons
to vote to remain in the EU. He lost that battle, but his Winton Diversified
fund positioned itself to be an early winner nonetheless.
The fund gained 3.1% early Friday,
helped by bets against the British pound and euro, according to a client note
reviewed by The Wall Street Journal. Winton oversees more than $34 billion and
uses automated computer programs to trade around economic trends. A spokeswoman
for Winton declined to comment.
Crispin Odey, meanwhile, signed a public letter
backing the campaign to leave the EU and set up his $10 billion firm
accordingly. Mr. Odey’s flagship hedge fund gained 15% on Friday, paring half
its loss for the year, a person close to the matter said, helped by wagers on
havens like gold as investors sought stability.“What a day,” Mr. Odey said.
Gold for June delivery climbed 4.7%, to
$1,320 a troy ounce, on the Comex division of the New York Mercantile Exchange,
its largest one-day gain since September.
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