A sensible prediction on a seemingly obvious outcome on how the markets would react following the British referendum on European Union membership by 36-year-old hedge fund manager James Hanbury has resulted in a vast win of £110 million ($148 million), the Daily Mail reports.
The paper says that despite commissioning a private poll before the referendum which showed a Remain vote winning, Hanbury, who manages £1.1 billion for Odey Asset Management, decided to gamble on a Leave vote anyway — reasoning that there was a lot to gain and little to lose.
The vote to leave, a so-called Brexit, raised the prospect of sustained anxiety in the global economy as investors struggle to surmise what is happening. He guessed that Britain might shock the world by voting to Leave — and that the value of sterling would plunge as a result.
Brexit hit the financial world hard, with the pound dropping to a 31 year low and billions disappearing from the FTSE after the result. His latest coup will go down in hedge fund history and is comparable to a similar move by legendary investor George Soros ahead of Black Wednesday (16 September 1992).
Soros is widely known as the man who “broke” the Bank of England in 1992, when he bet against the pound and made a reported £1.5 billion. He short-sold more than £7.6 billion in the currency — meaning he would make money if its value fell. So when the UK crashed out of the European Exchange Rate Mechanism and the pound collapsed, Soros pocketed a windfall.