How in-the-know traders made hundreds of millions from vote
HEDGE funds betting on Brexit cashed in as the pound and share prices tumbled following the vote to leave the European Union.
At 10.52pm on referendum day, sterling rose above $1.50 for the first time in six months after Nigel Farage conceded defeat and predicted that Remain had won.
But behind the scenes speculators still confident of a Leave victory were stacking up giant bets against the UK currency and British companies, which were seen as likely losers following a vote in favour of Brexit.
As the results started to come through their bets paid off as the pound dived to $1.32 in one of the largest falls of any major currency since the birth of the modern global financial system.
Many of these investors had hired polling companies and bought voting data in order to profit from the referendum, according to an investigation by Bloomberg.
This information put them in the perfect position to profit from the market turmoil and falling pound.
Among them was hedge fund tycoon and Brexit backer Crispin Odey, who commissioned a private poll from YouGov ahead of the referendum to steal a march on the financial markets. Mr Odey made more than £220million for himself and his investors in the immediate aftermath of the referendum, declaring at the time: ‘I think I may be the winner.’
His gains came as sterling tumbled as the results of the referendum came through the early hours of June 24, 2016.
The pound dipped after midnight when Newcastle voted for Remain by a much narrower margin than expected. Anyone shorting sterling was already ahead at this point.