Breaking News
0

Hedge fund boss Odey says pound could fall further as Brexit deadline looms

BrexitAug 09, 2018 15:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A shop assistant counts piles of British Pound Sterling banknotes at an Apple store in London

By Maiya Keidan

LONDON (Reuters) - Sterling and UK government bonds will fall further in the run-up to Brexit, even after the pound slumped this week to its lowest in almost a year, prominent Brexit-supporting British hedge fund manager Crispin Odey said on Thursday.

While most analysts and investors still expect Britain to secure a trade deal with the EU, Odey said he was continuing to bet against the pound, a stance that could reinforce the view of some that sterling risks a rapid depreciation as the deadline for an agreement approaches

Growing investor nervousness that Britain will exit the EU without an agreement sent sterling on Thursday to its lowest since Aug. 25, 2017. Volatility has surged and traders report investors rushing to protect themselves from further price falls.

Asked by Reuters whether he would bet on the pound falling further, Odey said he would continue to short sterling in the run-up to Brexit, scheduled for March next year.

"I've been short sterling because my sense is that we've got to go on our own. All these 'Remainers', they will feel it's the end of the world when we have to go on our own, but that's when you buy sterling back," he said, referring to supporters of staying in the EU, Britain's biggest trading partner.

Odey said sterling, which traded as low as $1.2842 on Thursday, could fall to $1.21, a further fall of more than 6 percent. The pound has lost more than 10 percent since April and is down almost 15 percent since the Brexit Referendum in June 2016.

He added that while he had covered some short positions on UK government bonds, he still retained a bet against gilts, saying there was "absolutely no value" in the market.

The recent rout in the pound began after the UK trade minister said over the weekend that there was a 60 percent chance of Britain leaving the EU without a deal. Bank of England Governor Mark Carney warned last week that the risk of a no-deal was "uncomfortably high".

Odey Asset Management, traditionally one of the bigger London-based hedge funds, does not publish its assets under management. Its European fund lost 20 percent of its value in 2017, although it has reaped 26 percent in gains so far this year.

Hedge fund boss Odey says pound could fall further as Brexit deadline looms
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email